Profits slump at AstraZeneca
pharmafile | April 24, 2014 | News story | Sales and Marketing | AZD9291, AstraZeneca, BMS, Brilinta, Q1
AstraZeneca has continued its poor run of form, with operating profit in the first quarter of 2014 falling 40% on the same period last year to $836 million.
Revenue for the first three months rose 3% year-on-year to $6.42 billion, and AstraZeneca has put a brave face on the profit nosedive – with chief executive Pascal Soriot pointing to ‘continued momentum across the business’.
The figures come as no surprise: the manufacturer has been ‘battling headwinds’ recently, with turnover in 2013 down 8% to $25.7 billion, and profit plummeting 25% to $8.4 billion.
Soriot has pledged to halt the slide in its global sales in the next three years.
“I am pleased with the significant progress we are making towards achieving scientific leadership in our core therapeutic areas,” Soriot insists. “We have confirmed our decision to advance four programmes to Phase III in oncology and respiratory disease.”
He highlighted the FDA’s ‘breakthrough therapy’ designation for AZD9291 in non-small cell lung cancer, and the priority review given by the US regulator to olaparib in ovarian cancer, both of which could lead to speedy access to new revenue streams for the company.
Brilinta also put in a stellar performance, with sales of $99 million representing a 94% increase on 2013.
However, late-stage failures in oncology plus patent expiries for former blockbusters such as the antipsychotic Seroquel (quetiapine) and gastrointestinal treatment Nexium (esomeprazole) have been putting an inevitable dent in performance.
“We are investing in our rapidly progressing pipeline and the key platforms that are the backbone of our strategy to return to growth,” Soriot says. “To further concentrate organisational focus, we will continue to redeploy our resources in our core priorities and pursue opportunities that maximise the value of our pipeline and portfolio.”
Earlier this week, the manufacturer declined to comment on reports that it had rejected a $60 billion bid from Pfizer.
AstraZeneca is reorganising its global operations to create $1.1 billion of annual benefits, with a new £330 million R&D centre and international HQ in Cambridge, UK, and adding to existing sites in the US and Sweden by 2016.
It also made a $4.3 billion acquisition of its own late last year, buying Bristol-Myers Squibb’s diabetes business in a move which gives AstraZeneca control over several big-name brands including Onglyza, Forxiga and Byetta in a core therapy area.
The diabetes franchise brought in $347 million in Q1 of 2014.
Adam Hill
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