Loss of exclusivity on several brands hurts AstraZeneca in Q1

Revenue contracted 12 per cent to 6.39bn dollar in the first quarter at FTSE 100-listed pharmaceuticals group AstraZeneca after losses of exclusivity for Seroquel IR and Atacand in many markets, and for Crestor in Canada.

Revenue contracted 12 per cent to 6.39bn dollar in the first quarter at FTSE 100-listed pharmaceuticals group AstraZeneca after losses of exclusivity for Seroquel IR and Atacand in many markets, and for Crestor in Canada.

The group reported that growth for Symbicort, Brilinta, Iressa and the inclusion of the Amylin diabetes products delivered more than $250m of revenue growth at constant exchange rates in the quarter.

Emerging Markets revenue increased by 9.0% at constant exchange rates (CER) in the quarter and core operating profit was down 21% at CER to $2.32bn in the first quarter.

The group said that the core operating profit decline had been driven by lower revenue and lower core other income, partially offset by core operating costs that were 4.0% lower at CER than last year.

Core earnings per share (EPS) was $1.41, down 21% at CER compared to the first quarter last year. This declined in line with core operating profit, as a higher tax rate this year was broadly offset by a lower number of shares outstanding and lower net finance expense, the group said.

AstraZeneca said that it continued to expect a mid-to-high single digit decline in revenue at CER and a core EPS decline that would be significantly larger than the decline in revenue for the full year.

Pascal Soriot, Chief Executive Officer of AstraZeneca, commented: "As anticipated, the first-quarter performance reflects the loss of exclusivity for several large products. We remain focused on our strategic priorities of returning to growth and achieving scientific leadership."

Soriot added: "Brilinta, the diabetes franchise, Emerging Markets, Japan and our Respiratory products have all made good progress and we continued to invest in distinctive science that will advance our knowledge of disease physiology and help to identify new drug targets."

MF

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

The rising dollar is proving bad news for most other assets – will it last?
Investment strategy

The rising dollar is proving bad news for most other assets – will it last?

Precious metals, stocks and pretty much every other asset has taken a tumble as the US dollar strengthens. Dominic Frisby looks at how long this trend…
23 Sep 2020
The electric-car bubble could get an awful lot bigger from here
Renewables

The electric-car bubble could get an awful lot bigger from here

The switch to electric cars is driving a huge investment bubble. But that’s not necessarily a bad thing, says John Stepek. Fortunes will be made and l…
24 Sep 2020
Why you should stuff your end-of-pandemic portfolio with Chinese stocks
China stockmarkets

Why you should stuff your end-of-pandemic portfolio with Chinese stocks

For an end-of-pandemic portfolio, you need assets that can cope with today’s volatility. And that, says Merryn Somerset Webb, means Chinese stocks.
14 Sep 2020