AstraZeneca's 3Q Drops on Patent Losses
AstraZeneca PLC third quarter and nine months results 2013
Thursday, 31 October 2013
Pascal Soriot, Chief Executive Officer, commenting on the results, said:
“We continue to focus on the strategic priorities of returning to growth and
achieving scientific leadership, and this is reflected in continued investment
in our growth platforms and our pipeline. I am pleased with the progress we are
making, particularly on the pipeline, with three regulatory filings, three Phase
III starts and four business development transactions since our last update. As
expected, our financial performance this year reflects the ongoing impact from
the loss of exclusivity for several key brands.”
As expected, third quarter revenue declined due to the ongoing impact
from products with recent losses of exclusivity. The 4 percent decline in
revenue on a constant currency basis, combined with continued investment in our
growth platforms and scientific leadership resulted in a greater decline in Core
earnings per share. The late-stage pipeline continued to grow; since the half
year update there have been three new Phase III programme starts and three
regulatory filings were accepted for review.
Revenue in the third quarter was $6,250 million, down 4 percent at
constant exchange rates (CER).
- Loss of exclusivity on several brands accounted for around $350 million in
CER revenue decline in the quarter.
- Five growth platforms (Emerging Markets, Japan, Brilinta, diabetes franchise
and respiratory franchise) achieved an 8 percent revenue increase at CER in the
Core operating profit in the third quarter was down 29 percent at CER
to $2,027 million.
- The $250 million gain within Core other income from the sale of OTC rights
for Nexium in the third quarter last year accounted for 9 percentage points of
the decline in the quarter. The balance of the decline was largely driven by
lower revenue combined with an increase in Core operating costs.
Core EPS was $1.21 in the third quarter, a 26 percent decline at
Reported EPS in the third quarter was down 16 percent at CER to
- Reported EPS in the third quarter this year includes $0.18 per share benefit
from the reversal of an intangible asset impairment related to the initiation of
Phase III clinical trials for olaparib.
Late stage pipeline strengthened by three new Phase III clinical
programme starts: olaparib, selumetinib and benralizumab. Regulatory filings
were accepted for review for olaparib and naloxegol in Europe and for Epanova in
New collaborations with Merck (WEE1 kinase inhibitor) and Janssen
(co-promotion of abiraterone acetate in Japan) and acquisitions of Amplimmune
and Spirogen strengthen our oncology portfolio.
Posted: October 2013