logo-loader

AstraZeneca's earnings rise in 2015 but sees fall this year

Published: 03:45 04 Feb 2016 EST

cq5dam.web.1200.AZ1575_Equipment
AstraZeneca said sales of its growth drugs rose 11% in the year, making up 57% of total revenue

AstraZeneca (LON:AZN, NYSE:AZN) posted higher earnings in 2015 but forecast a decline this year as its Crestor cholesterol drug faces more US competition.

The drug company said reported earnings per share in 2015 rose 137% at constant exchange rates (CER) to US$2.23 and by 128% on an actual basis.

Core CER earnings per share gained 7% to US$4.26 but fell 1% in actual terms. Total CER revenue climbed 1% to but was 7% down after taking exchange rates into account.

Core CER operating profit lifted 6% to US$6.9bn and actual operating profit fell 1%.

AstraZeneca proposed a second interim dividend of US$1.90 per share, bringing the full-year dividend to US$2.80, and reaffirmed its commitment to a progressive dividend policy.

But it forecast Total 2016 revenue and core EPS to decline in low to mid-single digit percentage terms, which it said reflected the dilutive effects arising from last year's Acerta Pharma and ZS Pharma deals.

The guidance also assumed the loss of exclusivity for Crestor in the US from May 2016.

AstraZeneca said sales of its growth drugs rose 11% in the year, making up 57% of Total revenue.

Chief executive Pascal Soriot said: "Our culture of innovation continued to drive R&D productivity, with six regulatory approvals in the year.

"This momentum will continue in 2016 as we anticipate six regulatory submissions and around ten major data readouts.

"We strengthened the strategic importance of oncology, bringing to patients next-generation therapies such as Tagrisso in lung cancer and Lynparza in ovarian cancer, as well as a promising immuno-oncology pipeline.

"Alongside this organic progress, we also continued to invest in our main therapy areas through key agreements with Acerta Pharma, ZS Pharma, and Takeda.

"As we face the transitional period of patent expiry for Crestor in the US, we're confident that our strong execution on strategy, combined with the benefits of focused investments and new launches, keeps us on track to return to sustainable growth in line with our targets."

Shares in AstraZeneca fell 145.5p to 4266.5p.

BenevolentAI advances novel ulcerative colitis treatment through Phase 1a trial

BenevolentAI (OTC:BAIVF) chief scientific officer Dr Anne Phelan joins Proactive's Stephen Gunnion with positive safety data from the Phase 1a, first-in-human, clinical study of BEN-8744 in healthy volunteers. Phelan explained that BEN-8744 is a potent, selective PD10 inhibitor, uniquely...

47 minutes ago