ccording to Pascal Sori-
ot, CEO of AstraZeenca,
“2017 should be a turn-
ing point in our journey as we
bring new medicines to patients
across the globe. It is an exciting
time as we approach the inflec-
tion point for our anticipated
return to long-term growth,
built on the foundations of a sci-
Soriot contends that despite
the challenges the company
faces – among them the expi-
ration of patents for its leading
selling medicines and getting
new drugs approved – “a new
AstraZeneca is emerging and its
shape is the result of the strategy
we announced in March 2013. “
This new AstraZeneca is being
built on a pipeline-driven trans-
formation and a focus on three
main therapy areas, Soriot says.
“We are focused on returning
to growth through a science-led
innovation strategy,” he ex-
plains. “Our strategic priori-
ties, and the indicators against
which we measure our success,
are based on investing in three
therapy areas, building a strong
and balanced portfolio of prima-
ry care and specialty care medi-
cines, and accelerating key R&D
global commercial presence.”
The first phase in the compa-
ny’s transformational journey
ended in 2015 and was focused
on rebuilding the pipeline. Ac-
cording to Soriot, 2016 was a
crucial year in the second stage
of the journey, as AstraZeneca
had to manage a transitional pe-
riod of patent expirations, drive
its growth platforms and roll out
“While now largely behind
us, the impact of the loss of exclusivity on some of our most
important medicines has been
significant and will continue in
2017,” Soriot notes.
Between 2011 and 2016, patent expirations reduced product
sales in established markets of
several brands, such as the statin Crestor, the proton-pump
inhibitor Nexium, and the antipsychotic Seroquel, from $20
billion to $6 billion. Executives
say unfavorable currency movements accounted for $2 billion
of this $14 billion reduction.
“This decline represents a
significant ‘headwind’, but we
have made significant progress
rebuilding our company for the
future and preparing for a new
period of growth driven by our
pipeline delivery,” Soriot says.
In 2016, AstraZeneca recorded
revenue of $23 billion, 6. 9 percent less than in 2015. Executives attributed the decrease to
the ongoing impact of patent expirations, particularly the statin
Crestor in the United States.
In 2016, U.S. revenue was
down 22 percent to $7.37 billion; Europe decreased 5 percent to $5.06 billion; and Established ROW rose by 2 percent to
Revenue during the first six
months of 2017 amounted to
$10.46 billion, 10. 8 percent less
than in the first half of the pre-
vious year. Soriot says the per-
formance was “in line with ex-
pectations as we experience the
loss of exclusivity of Crestor and
Seroquel XR in the U.S.”
Reported post-tax profit for
2016 amounted to $3.41 bil-
lion, an increase of 21 percent
(CER: increase of 6 percent).
Reported basic EPS of $2.77
for 2016 represented growth
of 24 percent (CER: growth of
9 percent), partly reflecting the
revaluation of acquisition-re-
lated liabilities. Diluted earn-
ings per share in 2016 came to
$2.76 compared to $2.23 for
the 2015 calendar term.
For the first half of 2017, profit after tax amounted to $958
million compared to $594 million during January-June 2016.
Diluted earnings per share were
80 cents compared with 51 cents
in first-half 2016.
For 2016, the company spent
$5.89 billion for R&D, 1.8 percent less than in 2015. First-half
2017 R&D costs were $2.8 billion, 4. 9 percent less than in the
first half of 2016.
products in 2016 with sales of
more than $500 million were
Crestor, Symbicort, Nexium,
Pulmicort, Brilinta, Farxiga,
Faslodex, Zoladex, Toprol-XL/
Seloken, Seroquel XR, Onglyza,
Synagis, Bydureon, and Iressa.
Despite the product’s patent
expirations, the statin Crestor
remained AstraZeneca’s top-selling medicine in 2016. However, sales declined from $5.02
billion to $3.4 billion. First-half
2017 sales continued to fall, to
$1.19 billion, 43 percent less than
during first-half 2016.
The respiratory drug
Symbicort, the second best-seller in
2016, generated $2.99 billion,
11. 9 percent less year over year.
In the first half of 2017, sales
were $1.38 billion, 11 percent
less than during the same period of 2016.
In January 2017, AstraZeneca announced that U.S. Food
and Drug Administration was
granted six months of pediatric
exclusivity for Symbicort. The
FDA’s decision was based on
the evaluation of trials conducted in children with asthma aged
6 up to 12 years in response
to a Written Request. Symbicort is approved in the United
States to treat asthma in patients 12 years and older and for
the maintenance treatment of
chronic obstructive pulmonary
disease (COPD) in adults.
No. 3 in sales was the proton-pump inhibitor Nexium,
at $2.03 billion, a decline of 18. 6
percent from 2015. For the first
half of 2017, Nexium sales were
$1.06 billion, 3 percent more
than in first-half 2016.
The fourth best-selling drug
in 2016 was the respiratory drug
Pulmicort, at $1.06 billion, a
modest 4. 6 percent increase from
2015. First-half 2017 sales were
$563 million, 3 percent more
than in the first half of 2016.
No. 5 in 2016 sales was the
heart drug Brilinta, which is
one of AstraZeneca’s six focused
growth platforms. The drug
generated sales of $839 million
compared with $619 million in
2015. First-half 2017 sales were
reported at $496 million, an increase of 26 percent compared
with first-half 2016.
The diabetes drug Farxiga
was the sixth best-selling drug in
2016, at $835 million compared
with $492 million in 2015. In
the first half of 2017, sales of the
drug were $457 million, 22 percent more than in the same period last year.
No. 7 in 2016 sales was the
oncology drug Faslodex, which
generated $830 million, a 17. 9
percent increase from 2015.
First-half 2017 sales were $462
million, 15 percent more than in
The eighth best-selling drug in
2016 was another oncology drug,
Zoladex. Sales of $816 million
were unchanged from 2015.
During the first half of 2017 sales
declined 5 percent compared with
first-half 2016, to $363 million.
AstraZeneca’s ninth top seller
in 2016 was another of its “leg-
acy” products, the heart drug
Toprol-XL/Seloken, at $737
million, 3. 8 percent more than
in 2015. Sales of the product in
first-half 2017 declined 3 percent
when compared with the same
period in 2016, to $367 million.
No. 10 for the company in
2016 was the antipsychotic
Seroquel XR. Patent expiration
continued to affect the product’s
sales, which declined 28.4 percent from 2015 to $735 million.
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PRODUCT SALES SALES
Crestor $3,401 $5,017
Symbicort $2,989 $3,394
Nexium $2,032 $2,496
Pulmicort $1,061 $1,014
Brilinta $839 $619
Farxiga $835 $492
Faslodex $830 $704
Zoladex $816 $816
Toprol-XL/Seloken $737 $710
Seroquel XR $735 $1,025
Onglyza $720 $786
Synagis $677 $662
Bydureon $578 $580
Iressa $513 $543
All sales are in millions of dollars.
Revenue $23,002 $24,708
Net income $3,406 $2,826
Diluted EPS $2.76 $2.23
R&D expense $5,890 $5,997
Revenue $10,456 $11,718
Net income $958 $594
Diluted EPS $0.80 $0.51
R&D expense $2,802 $2,945
In millions of dollars, except EPS
First-half 2017 sales were $162
million, 62 percent less than in
the first half of 2016.
No. 11 in sales for 2016 was the
diabetes drug Onglyza, at $720
million, 8. 4 percent less than in
2015. Sales of the product for
the first half of 2017 were $304
million, 24 percent less than in
The company’s 12th best-selling drug in 2016 was the RSV
disease preventative Synagis.
The drug achieved sales of $677
million, 8. 8 percent more than
in 2015. In the first half of 2017,
sales were $300 million, 11 percent more than during the same
period last year.
No. 13 for AstraZeneca in 2016
was the diabetes drug
Bydureon, which generated $578 million, about the same as in 2015.
First-half 2017 sales of $299
million were 3 percent more
than those in first-half 2016.
Coming in at No. 14 was the
lung cancer medicine Iressa
with $513 million in sales, 5. 5
percent less than the total generated during 2015. For the first
half of this year, sales of $263
Eyes to the future
Although patent expirations continue to depress revenue,
AstraZeneca executives believe in the pipeline.
By Christiane Truelove firstname.lastname@example.org
Financial Results & Product Sales