31st Oct 2013 08:27
LONDON (Alliance News) - AstraZeneca PLC Wednesday said it continues to anticipate mid-to-high single-digit decline in revenue on a constant currency basis for the full year, as it posted lower revenue and pretax profit in the third quarter due to the losses of exclusivity for several brands.
AstraZeneca said that it expects to increase core operating costs for the full year, which it anticipates will be towards the upper end of its low-to-mid single-digit guidance range. It continues to expect core earnings per share to decline at a "significantly higher" rate than the decline in revenue expected in 2013, AstraZeneca said.
In the third quarter AstraZeneca posted revenue of USD6.25 billion, down 6% from USD6.68 billion in the previous year. Pretax profit was USD1.59 billion, down from USD2.03 billion. AstraZeneca lost exclusivity for several brands, which it said accounted for around USD350 million of the revenue decline in the quarter.
Earnings per share dropped to USD1.21 from USD1.68 in the previous year.
"As expected, our financial performance this year reflects the ongoing impact from the loss of exclusivity for several key brands," said Chief Executive Officer Pascal Soriot in a statement. "I am pleased with the progress we are making, particularly on the pipeline, with three regulatory filings, three Phase III starts and four business development transactions since our last update."
US revenues dropped 8% in the third quarter, AstraZeneca said, partially due to loss of exclusivity but also the negative impact of the US healthcare reform dubbed Obamacare.
In a separate statement, AstraZeneca said it had appointed Marc Dunoyer as Chief Financial Officer, succeeding Simon Lowth. Dunoyer previously worked at GlaxoSmithKline PLC and is currently AstraZeneca's executive vice president of global portfolio and product strategy. It said Lowth will leave Thursday.
Shares in the biopharmaceutical company were trading down 2.4% at 3,251.25 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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