AstraZeneca's third-quarter 2014 core earnings of $1.05 per ADS
beat the Zacks Consensus Estimate of $1.04. Earnings were also up
8% (at CER) year over year. AstraZeneca's quarterly revenues
increased 5% (at CER) year over year to $6.5 billion. Revenues were
above the Zacks Consensus Estimate of $6.3 billion. AstraZeneca
raised its revenue and earnings guidance for 2014. It now expects
revenues to increase in the low single-digit percentage and core
earnings to decrease at 10%. We expect the top and the bottom line
to remain under pressure as Nexium went off-patent. We are
nonetheless pleased with recent approvals (Xigduo and Movantik in
the U.S.). We are positive on AstraZeneca's efforts to boost its
pipeline through acquisition and licensing deals. We maintain a
AstraZeneca plc, headquartered in London, UK, is one of the
largest biopharmaceutical companies in the world. AstraZeneca was
formed on Apr 6, 1999 through the merger of Sweden's Astra AB and
UK's Zeneca Group plc. AstraZeneca's business can be broken down
into separate lines based on therapeutic classes. These include:
gastrointestinal, cardiovascular, respiratory, oncology,
neuroscience, infection and other. The company's key products
include Crestor (cholesterol management: $5.6 billion sales in
2013) Nexium (acid reflux management: $3.9 billion sales in 2013)
Symbicort (asthma: $3.5 billion sales in 2013) Seroquel
(schizophrenia and bipolar mania: $1.7 billion sales in 2013)
Zoladex (prostate and breast cancer: $996 million sales in 2013)
and Atacand (hypertension and symptomatic heart failure: $611
million sales in 2013). However, several of these key products are
facing generic competition.
In 2013, U.S. sales declined 9% (at constant exchange rates
[CER]), primarily hurt by the loss of exclusivity of several key
products including Seroquel. Strong performance by Symbicort,
Faslodex and Onglyza partially offset the decline in revenues.
2013 sales in Europe were down 9% (CER) due to generic
competition (Nexium, Arimidex, Seroquel IR and Merrem). Established
ROW sales were down 10% to approximately $4.0 billion. Sales in
emerging markets climbed 8% to $5.4 billion.
In Jun 2007, AstraZeneca acquired biotechnology company
MedImmune for $15.6 billion thus strengthening its product
portfolio further. In Aug 2011, AstraZeneca sold its Astra Tech
business to DENTSPLY for about $1.8 billion in cash. In a bid to
add late-stage candidates to its pipeline, AstraZeneca entered into
a number of acquisition deals (Almirall's respiratory franchise,
Bristol-Myers' diabetes portfolio, Pearl Therapeutics and Omthera
Pharmaceuticals) in the last few quarters and struck agreements
with companies such as FibroGen, Inc.
2013 Revenues by Disease Category
Geographical Break-Up of 2013 Revenues
AstraZeneca plc (AZN): Read the Full Research
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
ASTRAZENECA PLC (AZN): Free Stock Analysis
To read this article on Zacks.com click here.