AstraZeneca PLC - H1 2017 Results
AstraZeneca PLC
27 July 2017 07:00
H1 2017 Results
AstraZeneca performed in line with expectations as the pipeline continued to deliver
Financial Summary
| H1 2017 | Q2 2017 | |||||
| $m | % change | $m | % change | |||
| Actual1 | CER2 | Actual | CER | |||
| Total Revenue | 10,456 | (11) | (9) | 5,051 | (10) | (8) |
| Product Sales | 9,783 | (11) | (10) | 4,940 | (10) | (8) |
| Externalisation Revenue | 673 | (2) | (1) | 111 | (17) | (15) |
| Reported Operating Profit | 1,842 | 37 | 22 | 925 | n/m | n/m |
| Core Operating Profit3 | 3,215 | 7 | 3 | 1,548 | 10 | 8 |
| Reported Earnings Per Share (EPS) | $0.80 | 58 | 41 | $0.38 | n/m | n/m |
| Core EPS3 | $1.86 | 5 | 1 | $0.87 | 5 | 6 |
Financial Highlights
- The residual effects of the Crestor and Seroquel XR loss of exclusivity in the US impacted Product Sales
- Cost discipline continued:
o Reported R&D costs declined by 5% (1% at CER) to $2,802m
o Core R&D costs declined by 7% (4% at CER) to $2,617m
o Reported SG&A costs declined by 17% (15% at CER) to $4,658m
o Core SG&A costs declined by 12% (9% at CER) to $3,728m
- Reported Other Operating Income and Expense increased by 97% (101% at CER) to $839m; Core Other Operating Income and Expense increased by 105% (108% at CER) to $958m
- Reported EPS increased by 58% (41% at CER) to $0.80; Core EPS increased by 5% (1% at CER) to $1.86
- An unchanged first interim dividend of $0.90 per share
- Financial guidance for 2017 reiterated
Commercial Highlights
- The Growth Platforms grew by 2% (3% at CER) and represented 70% of Total Revenue:
- Emerging Markets: 3% growth (6% at CER), underpinned by China sales growth of 3% (8% at CER). Economic conditions in Latin America and Saudi Arabia limited overall Emerging Markets growth
- Respiratory: A decline of 6% (4% at CER), reflecting the competitive environment for Symbicort in the US
- New CVMD4: Growth of 3% (4% at CER). Brilinta growth of 26% (28% at CER) and Farxiga growth 22% (22% at CER), offset by other Diabetes
- Japan: Growth of 7% (6% at CER), with an accelerated performance in Q2 2017 reflecting the strong uptake of Tagrisso
- New Oncology5: Sales of $537m (H1 2016: $251m); particularly encouraging growth of Tagrisso. Lynparza's US performance reflected the current indication
Achieving Scientific Leadership
The table below highlights the development of the late-stage pipeline since the last results announcement:
| Regulatory Approvals | Imfinzi (durvalumab) - bladder cancer (US)Faslodex - breast cancer (1st line) (EU, JP) Kyntheum (brodalumab) - psoriasis (EU, received by partner) |
| Regulatory Submission Acceptances | Lynparza - ovarian cancer (2nd line) (EU, JP) Bevespi - chronic obstructive pulmonary disease (COPD) (EU) |
| Phase III or Major Data Readouts | Imfinzi - lung cancer (PACIFIC)Bydureon - type-2 diabetes cardiovascular outcomes trial (met primary safety objective, did not meet primary efficacy objective)tralokinumab - severe, uncontrolled asthma (did not meet primary endpoint) |
Pascal Soriot, Chief Executive Officer, commenting on the results said:
"Our performance in the first half was in line with expectations as we experience the loss of exclusivity of Crestor and Seroquel XR in the US. We continued to deliver transformative science across the pipeline, particularly in Oncology. Imfinzi was launched in bladder cancer while we published practice-changing data in breast cancer for Lynparza, our first-in-class PARP inhibitor. In lung cancer, we strengthened our unique portfolio focused on both the genetic drivers of disease and immunotherapy. In the first half, we shared positive results for Imfinzi in the PACIFIC trial and reported more encouraging data for Tagrisso in patients with central nervous system metastases.
"I'm excited about our pipeline-driven transformation as we continue to deliver for shareholders on our strategy to return to sustainable long-term growth. In a pivotal year for AstraZeneca, we remain focused on realising the potential of our pipeline, growing our new launch medicines and bringing our strong science to patients."
Click on, or paste the following link into your web browser, to view the associated PDF document.