AstraZeneca's net profit declined sharply by 52.9 per cent to $828 million during the first quarter ended March 2013 on account of loss of exclusivity on several brands from $1,759 million in the corresponding period of last year. Its sales also declined by 13.1 per cent to $6,385 million from $7,349 million. The loss of exclusivity for Seroquel IR and Atacand in many markets, and for Crestor in Canada, were the key drivers for the revenue decline. The negative impact of US healthcare reform on first quarter revenue and costs was $223 million.

Pascal Soriot, CEO, said, “As anticipated, the first quarter performance reflects the loss of exclusivity for several large products. We remain focused on our strategic priorities of returning to growth and achieving scientific leadership. Brilinta, the diabetes franchise, emerging markets, Japan and our Respiratory products have all made good progress and we continued to invest in distinctive science that well advance our knowledge of disease physiology and help to identify new drug targets.”

Its US revenues declined by 16 per cent on account of generic competition for Seroquel IR. Its revenue in the rest of world declined by 9 per cent. Its revenue in Europe was down by 16 per cent.  The sales of Seroquel IR declined by 82 per cent to $127 million from $754 million in the corresponding period of last year and that of Atacand declined by 47 per cent to $168 million from $317 million. Similarly, the sales of Crestor declined by 11 per cent to $1,323 million from $1,500 million.

The company announced a new set of restructuring initiatives during March 2013, including R&D site footprint changes to align with globally recognised bioscience clusters and further restructuring of selling & general and administrative expenses. The combined programme will result in the elimination of approximately 5,050 roles and the relocation of 2,500 positions. The combined programme will result in an estimated $2.3 billion in restructuring charges. Restructuring charges of $543 million were taken in the first quarter of 2013.