Thursday, 1 August 2013
Pascal Soriot, Chief Executive Officer, commenting on the results, said:
"We have made real progress in the second quarter against our strategic priorities despite the anticipated impact on revenue of the loss of exclusivity for some brands. We continue to invest in distinctive science, our pipeline projects, products and key markets and our five key growth platforms delivered a double-digit increase in revenue contribution. Despite the fostamatinib disappointment, the late-stage pipeline in our core therapy areas is growing, and has been further strengthened with the acquisitions of Omthera Pharmaceuticals and Pearl Therapeutics and the recently announced collaboration with FibroGen. In announcing the Cambridge Biomedical Campus as the location of our new UK strategic centre, we also reaffirmed our commitment to invest in research and development productivity."
Revenue in the second quarter declined by 4 percent at constant exchange rates (CER), as the impact from products with recent loss of exclusivity has moderated from the levels experienced in recent quarters. Revenue for the rest of the portfolio was up 4 percent, fuelled by a double-digit increase from the five growth platforms. The pipeline was further strengthened by the addition of three promising late-stage assets in core therapeutic areas of cardiovascular/metabolism and respiratory diseases.
Revenue for the second quarter was $6,232 million, down 4 percent at CER.
- Loss of exclusivity on several key brands accounted for approximately $500 million in revenue decline in the quarter.
- Five growth platforms (Emerging Markets, Japan, Brilinta, diabetes franchise and respiratory franchise) contributed more than $400 million in CER revenue growth in the second quarter.
Core operating profit in the second quarter was down 10 percent at CER to $2,056 million.
Core EPS was $1.20 in the second quarter, a 21 percent decline at CER, due to a higher tax rate.
- Core EPS in the second quarter 2012 benefited by $240 million ($0.19 per share) due to the tax settlement of a cross border transfer pricing issue.
- Reported EPS in the second quarter was $0.66, down 44 percent at CER.
Acquisitions of Omthera Pharmaceuticals and Pearl Therapeutics and the recently announced collaboration with FibroGen add three late-stage assets to the pipeline.
Revenue guidance for the full year unchanged; with investment in growth platforms and acquired development projects, Core operating costs now expected to increase in the range of low-to-mid single digits at CER compared with 2012.
The New Drug Application for Forxiga (dapagliflozin) was filed with the US FDA in July 2013.
The Board has recommended a first interim dividend of $0.90.