Thursday, 6 November 2014
Pascal Soriot, Chief Executive Officer, commenting on the results, 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 percent 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.
“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.
“This enhanced execution of our strategy and our sustained performance gives us confidence to increase our revenue and Core earnings guidance for the year. I’m particularly proud of our teams who continue to demonstrate their focus and belief in our strategy, which is rapidly transforming our company.”
THIRD QUARTER AND NINE MONTHS RESULTS 2014
Announced on Thursday 6 November 2014
- Press release (PDF 413kb)
- Development pipeline table (PDF 117kb)
- Download presentation (PDF 1443kb)
- Clinical trial programmes summary (PDF 1966kb)
Revenue in the third quarter was $6,542 million, up 5%* - third consecutive quarter of revenue growth. Nine months revenue was up 4%.
- Year-to-date growth platforms up 16%, contributing 54% of total revenue.
- Brilinta: +78%, good momentum across all regions.
- Diabetes: +139%, strong US Farxiga launch and good uptake of Bydureon Pen.
- Respiratory: +11%, US Symbicort growth of 26%.
- Emerging Markets: +12%, with China growth of 22%.
- Japan: stable, impacted by mandated biennial price cuts and increased use of generics.
Core EPS in the third quarter was $1.05, down 8%. Nine months Core EPS declined 3%; better than anticipated in previous full-year guidance.
The Company increases its revenue and Core EPS guidance for the full year 2014.
- Revenue is now expected to increase in low single digits at CER, an upgrade on our previous guidance for revenue to be in line with 2013 at CER.
- For planning purposes this guidance assumes no US Nexium generic in 2014.
- In light of the increase in revenue expectations for the year, the Company is accelerating its investments in its growth platforms and expanding pipeline. Core EPS for 2014 is now expected to decrease at around 10% at CER; better than anticipated in previous guidance. In addition, Core EPS for 2014 at actual exchange rates is expected to be impacted negatively by currency by around 5%, assuming current exchange rates.
- For 2015, the Company plans to continue to selectively invest in its growth platforms and accelerating pipeline while managing overall costs. Assuming current exchange rates, the Company is targeting Core EPS for 2015 to be no less than the lower end of the range of the upgraded guidance for Core EPS for 2014 at actual exchange rates. Guidance for 2015 is expected to be provided with 2014 results on 5 February 2015.
Significant progress made towards achieving scientific leadership in core therapeutic areas.
- Xigduo XR (dapagliflozin and metformin extended release): FDA approval of once-daily tablets.
- Lynparza (olaparib): Positive opinion from the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) for platinum sensitive relapsed BRCA-mutated high grade serous ovarian cancer.
- Movantik/Moventig (naloxegol): FDA approval and positive CHMP opinion for opioid-induced constipation.
- CAZ-AVI (ceftazidime-avibactam): Positive Phase III data for intra-abdominal infections.
- Lesinurad: Phase III data announced as a combination therapy for symptomatic gout.
Divestment of Myalept (metreleptin) to Aegerion allows for redeployment of resources.
Strategic business combination with Almirall in respiratory disease successfully completed.
Investor Day for institutional investors and analysts will be held on 18 November 2014.
*All growth rates are at constant exchange rates (CER).