AstraZeneca revenues reach standstill
pharmafile | January 31, 2011 | News story | Sales and Marketing | AstraZeneca, Full year 2010, patent expiry, results
AstraZeneca’s revenues came to a virtual standstill in 2010, with strong growth outside the US being offset by generic competition in the world’s biggest market.
The company also missed out on the revenues from a pandemic influenza vaccine which it had enjoyed the previous year, which meant total 2010 revenues reached $33.27 billion.
Revenue dropped 3% in the fourth quarter due to unfavourable exchange rates and further generic competition, which AstraZeneca will face more of in the coming year.
Cholesterol treatment Crestor, the company’s biggest earner, grew by a healthy 24% for the full year to reach $5.69 billion.
Its second biggest seller, heartburn drug Nexium, remained flat at $4.97 billion.
Blood pressure drug Toprol-XL saw one of the biggest dips in revenue, losing 16% in sales, down to $1.21 billion.
AstraZeneca said it would be maintaining its guidance that sales would be flat or decline in 2011.
Analysts have questioned how the company will offset a number of key looming patent expiries that includes Crestor.
AstraZeneca saw its best growth from emerging markets, increasing by 19% to $5.2 billion on last year, but saw major dips from the US and in Western Europe, with sales shrinking by 7% and 1% respectively.
This remains a constant theme for all pharma companies as President Obama’s healthcare reforms in the US and pricing pressures in the EU continue to affect prescription sales.
David Brennan, chief executive said: “Our performance in 2010 underlines the strength and resilience of AstraZeneca’s business.
“Despite government pricing pressures and anticipated patent expiries in the US and Western Europe, our revenues remained in line with the previous year driven by excellent performance of our key brands and continued growth in emerging markets.
“This performance, combined with disciplined management of the business enabled us to deliver increased earnings, increase the dividend and return residual cash to shareholders through share repurchases,” he added.
Ben Adams
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