AstraZeneca remains strong despite setbacks
pharmafile | February 1, 2005 | News story | Sales and Marketing |Â Â Â
AstraZeneca has announced impressive full-year figures for 2004 despite its market value slumping by nearly a third in the past year following a series of setbacks.
The Anglo-Swedish firm's chief executive Sir Tom McKillop admitted that the company had suffered "real disappointments" in 2004 but was confident of restoring fortunes, severely dented by negative regulatory decisions.
McKillop's optimism was backed up by the figures, which showed a 16% increase in pre-tax profits to $4.9 billion and a 14% growth in sales revenue to $21.4 billion.
The increase in pre-tax profits was fuelled by strong sales performances from ulcer treatment Nexium (up 15% to $3.9 billion) and schizophrenia drug Seroquel, which grew 33% to just over $2 billion.
In its cardiovascular portfolio, AstraZeneca's statin Crestor produced sales of $908 million, in only its second full year on the US market, despite continued allegations from some quarters that the drug was unsafe.
US sales of Crestor grew throughout the year, but AstraZeneca said it had not seized as much market share as expected, with US consumer group Public Citizen undermining confidence in the drug with claims it can produce potentially fatal side-effects in some patients.
Worse was to come in November when Dr David Graham, associate director of the FDA's Office of Drug Safety told a congressional inquiry that he believed Crestor was one of four currently marketed drugs that posed a safety risk to patients.
The FDA distanced itself from Dr Graham's remarks, but millions were wiped off the share value of AstraZeneca and the other companies implicated, as investors feared another major withdrawal to follow Vioxx.
AstraZeneca maintained a strong defence of Crestor throughout 2004, with McKillop telling reporters at its full-year results conference that the drug was "still the best statin, with better efficacy than any of the other products and a comparable safety profile".
The chief executive was even upbeat about Iressa, the cancer drug dealt a blow when clinical data released in late 2004 showed it had no significant life-prolonging properties. The company has withdrawn its EU marketing application and is discussing its future in the US with the FDA, but response in some subsets of patients means the drug retains some commercial potential.
McKillop highlighted the "enormous amount of" support for Iressa and the "considerable benefit" that it offered to some Asian patients and non-smokers, suggesting that the company would now focus on promoting the drug in East Asia.
Meanwhile, AstraZeneca is now in discussion with the FDA to determine if there is "any realistic prospect of bringing Exanta to the US market" but many investors fear that the drug may never be launched in the world's most important market. McKillop said a 'son' of Exanta was currently in the company's pipeline, but insisted that doctors remained very keen on Exanta itself.
McKillop said that he and other executives had shared the pain in the wake of the company's problems but dismissed suggestions he should waive a bonus of up to $1.8 million and insisted he would work for AstraZeneca "as long as the firm wishes".
The company is now pinning its hopes on regaining market share growth for Crestor and continued success for newer drugs such as breast cancer drug Arimidex, which saw sales rise by 48% to $811 million. Fast-growing Seroquel recently gained an additional FDA approval for the long-term treatment of bipolar disorder and has also shown potential as a treatment for dementia.
Related articles:
Trial data sounds death knell for Iressa
Tuesday , December 21, 2004
