AstraZeneca’s revenue in the fourth quarter was down 15 percent at constant exchange rates (CER) and declined by 16 percent on an actual basis as a result of the negative impact of exchange rate movements. Loss of exclusivity on several key brands accounted for the revenue decline.
US revenues were down 23 percent in the fourth quarter, as a result of the loss of exclusivity for Seroquel IR. Excluding Seroquel IR, revenue in the rest of the portfolio increased by 3.7 percent, including $84 million in new revenue from recognition of the Company’s share of the Amylin diabetes portfolio. The negative impact of US healthcare reform on fourth quarter revenue and costs was approximately $250 million.
Revenue in the Rest of World (ROW) was down 9 percent in the fourth quarter. Revenue in Western Europe was down 16 percent. Loss of exclusivity on four products (Seroquel IR, Atacand, Nexium and Merrem) accounted for 85 percent of the revenue decline. Revenue in Established ROW was down 14 percent, largely due to an 84 percent decline in Crestor sales in Canada as a result of generic competition. Revenue in Emerging Markets was up 6 percent, with good growth in China, Saudi Arabia and Russia.
Pascal Soriot, Chief Executive Officer, commenting on the results, said: “Our performance in 2012 reflects a period of significant patent expiry and tough market conditions globally. Despite the challenges we face, I am excited about AstraZeneca’s fundamental strengths which will be key in returning the Company to growth and achieving scientific leadership while maintaining our reputation for strong financial discipline. It is my firm belief that we have the brands, science, pipeline and people to create distinctive, long-term value for patients and shareholders. Our new leadership team and I look forward to elaborating on these themes at our Capital Markets Day in March.”
Revenue for the full year was down 15 percent at CER and declined by 17 percent on an actual basis as a result of the negative impact of exchange rate movements. More than 13 percentage points of the decline (approximately $4.5 billion) was related to loss of exclusivity on several brands in the portfolio, with the largest impact from Seroquel IR. The disposals of Astra Tech and Aptium accounted for around 1.7 percentage points of the year-on-year change. US revenue was down 21 percent; revenue in the Rest of World was down 11 percent.
The AstraZeneca pipeline now includes 84 projects, of which 71 are in the clinical phase of development and 13 are either approved, launched or filed. There are 11 new molecular entity (NME) projects currently in late stage development, either in Phase III or under regulatory review. During 2012, across the portfolio, 39 projects have successfully progressed to their next phase (including 12 molecules entering first human testing) and 19 projects have been withdrawn.
AstraZeneca is a global, innovation-driven biopharmaceutical business with a primary focus on the discovery, development and commercialization of prescription medicines for gastrointestinal, cardiovascular, neuroscience, respiratory and inflammation, oncology and infectious disease. AstraZeneca operates in over 100 countries and its innovative medicines are used by millions of patients worldwide.