AstraZeneca plc has recorded strong financial results for the year 2006 on account of better sales growth in its key products like Nexium, Seroquel, Crestor, Arimidex and Symbicort. However, the company is planning to undertake cost cutting measures including job termination of 3000 employees and rationalisation of production assets in the next three years.
The net earning improved by 28.3 per cent to $ 6,063 million from $ 4,724 million in the previous year. The company's net sale has increased by 11 per cent to $ 26,475 million from $ 23,950 million. The earnings per share saw a growth of 35 per cent to $ 3.36 from $ 2.50 in the previous year.
David Brennan, CEO, said, "In 2006, AstraZeneca reported another strong set of financial results and progress in strengthening the pipeline, but more remains to be done. Our agenda is clear. We are determined to maintain the sales momentum of our current product portfolio and to continue to build a pipeline to sustain our growth, while driving further productivity improvements and enhancing cash returns to shareholders."
The company's sales in US improved by 16 per cent and the same in other market by 7 per cent. The combined sales of five key growth products Nexium, Seroquel, Crestor, Arimidex and Symbicort grew by 23 per cent to $ 13,318 million. Nexium sales were up 12 per cent to $5,182 million. Since December 2005, the company has entered into twelve significant business development transactions and nine significant research collaborations. Including the recently announced collaboration with Bristol-Myers Squibb to develop two compounds to treat diabetes.