AstraZeneca’s Q1 2016 results include a total revenue growth by 5 %, driven by a significant increase in externalization Revenue and the results are in line with expectations.
The company’s core R&D costs increased by 15%, reflecting recent acquisitions and the Core R&D costs declined versus Q4 2015. The core SG&A costs fell by 6% and represented 35% of Total Revenue (Q1 2015: 39%). The core EPS declined by 7%, reflecting a significant reduction in Other Operating Income. The company also reported that the Operating Profit grew by 17% to $1,038m and that EPS grew by 26% to $0.51.
“We delivered a first-quarter performance in line with expectations, with the growth in Total Revenue underpinned by the performance of the Growth Platforms. I was particularly pleased with the results in China, where we continued to deliver double-digit sales growth, and with the progress of our New Oncology launches,” said Pascal Soriot, Chief Executive Officer.
The Growth Platforms grew by 6%, representing 56% of Total Revenue. Highlights include:
1. Respiratory: +2%. Growth of Pulmicort and newly-acquired medicines offset by a decline in sales of Symbicort
2. Brilinta/Brilique: +46%. Continued encouraging progress; post-MI approval in the EU
3. Diabetes: +23%. Strong sales growth included an increase of +65% in Emerging Markets.
Global Farxiga/Forxiga growth of 128%
4. Emerging Markets: +6%. Good China sales growth of +11%; slowdowns in other regions
5. Japan: -7%, reflecting destocking ahead of mandated biennial price reductions from April 2016
6. New Oncology: Contributed $99m. Launch of Tagrisso in key markets progressing well
“Strong advances were made in our late-stage pipeline, with regulatory approvals for Bevespi Aerosphere in the US for COPD, Brilique in the EU for post-myocardial infarction and Tagrisso in Japan for lung cancer. Looking ahead, we anticipate increased newsflow across the pipeline, including a number of regulatory decisions and data readouts, particularly in Oncology. As we continue to make encouraging progress with our priorities and our pipeline grows faster than anticipated, we are further sharpening our strategic focus on our main therapy areas, intensifying our efforts in Oncology and accelerating collaborations in opportunistic areas. We are also driving greater efficiency across the organisation to support the advancement of our strategy,” commented Soirot.
The company received regulatory approvals for Bevespi Aerosphere (previously PT003) – COPD (US), Zurampic – gout (EU), Brilique – post-myocardial infarction (post-MI) (EU) and Tagrisso – lung cancer (JP). Other key developments include Breakthrough Therapy Designation for durvalumab – bladder cancer (US), Orphan Drug Designation for acalabrutinib – blood cancers (EU); MEDI-551 – neuromyelitis optica (US) and Fast Track Designation for MEDI8852 – hospitalised influenza (US).