AstraZeneca PLC has suffered heavy setback during the third quarter ended September 2014 and its net profit declined sharply by 12 per cent to $1334 million from $1,523 million in the corresponding quarter of last year. Its revenues improved marginally by 4.7 per cent to $6,542 million from $6,250 million With sharp decline in profit, EPS declined to $1.05 from from $1.21 in the last period.
The sales were up due to improved exchange rates against major currencies. Its US revenue increased by 7 per cent The sales of Crestor and Nexium were under pressure due to loss of patent. However, sales of flumist and diabetes brands improved. Symbicort grew 29 per cent in the quarter driven by volume with net price broadly flat. Its revenue in Europe declined by one per cent due to lower sales of Seroquel XR resulting from adverse patent rulings in some markets coupled with 'at risk' launches for generics and the continuing impact of loss of exclusivity for Seroquel IR, Atacand and Merrem. Its revenue in emerging market increased by 13 per cent, with a 21 per cent increase in China.
Pascal Soriot, CEO, said, “I'm pleased to report our third consecutive quarter of revenue growth, driven by a strong contribution from our growth platforms. Brilinta, respiratory and diabetes, our three core franchises, increased sales by 38 per cent in the quarter, supported by continued selective allocation of sales and marketing resources. In addition, we have chosen to invest in our rapidly developing pipeline that will continue to create value for AstraZeneca in 2015 and beyond.”
He added, “We have made important progress towards achieving scientific leadership across all core therapeutic areas, including a positive opinion by the CHMP for Lynparza (olaparib), the FDA approval for Movantik, the launch of the Bydureon Pen in the US, and the progress of our immuno-oncology pipeline presented at ESMO. This momentum is further evidenced by the successful completion of our strategic business combination with Almirall, strengthening our respiratory franchise.
Its pipeline now includes 121 projects, of which 107 are in the clinical phase of development. There are 14 NME projects currently in late stage development, either in pivotal studies or under regulatory review. During third quarter, 11 project have successfully progressed to their next phase. R&D expenditure increased to $1,552 million from $1,061 million in the same quarter of last year.
For the nine months ended September 2014, AstraZeneca's revenue increased by 2.9 per cent to $19,412 million from $18,867 million. However its net profit declined sharply by 42 per cent to $2,486 million. Its US sales improved by 6 per cent to $7,479 million from $7,057 million and that in Europe improved marginally by 1.8 per cent to $4,925 million from $4,836 million.