AstraZeneca PLC Announces Full-Year and Q4 2016 Results

Performance in line with expectations; 2017 has the potential to be a defining year

2 February 2017 07:00

Financial Summary

    FY   2016   Q4   2016  
    $m   %   change   $m    % change  
    CER 1   Actual   CER   Actual  
Total Revenue   23,002   (5)   (7)   5,585   (12)   (13)  
Product Sales   21,319   (8)   (10)   5,260   (15)   (15)  
Externalisation Revenue   1,683   59   58   325   77   69  
   
Reported Operating Profit   4,902   9   19   2,533   n/m   n/m  
Core Operating Profit 2   6,721   (7)   (3)   2,026   15   30  
   
Reported Earnings Per Share (EPS)   $2.77   9   24   $1.46   93   n/m  
Core EPS   $4.31   (5)   1   $1.21   9   29  
  •         The fall in Product Sales primarily reflected the entry of Crestor generic medicines in the US; Crestor represents the last anticipated blockbuster 3 patent expiry, ahead of significant late-stage pipeline news flow  
  •         Good progress on cost control in the year, reflecting the evolving shape of the business:

                  -        Reported and Core R&D cost growth of 2% to $5,890m and 5% to $5,631m, respectively, including the absorption of the R&D costs of Acerta Pharma and ZS Pharma

                  -        Reported and Core SG&A costs declined by 12% to $9,413m and by 9% to $8,169m, respectively

  •   Reported EPS increased by 9% in the year to $2.77, reflecting a revaluation of acquisition-related liabilities. A 5% fall in Core EPS was driven by a corresponding rate of decline in Total Revenue
  •   A second interim dividend of $1.90 per share has been declared, bringing the dividend for the full year to $2.80 per share. The Board reaffirms its commitment to the Company’s progressive dividend policy

Commercial Highlights

The Growth Platforms grew by 5% in the year (Q4 2016: Up by 3%). Highlights included:

  •   Emerging Markets: 6% growth (Q4 2016: Up by 7%) to $5,794m, supported by China, up by 10% to $2,636m  
  •   Diabetes : Growth of 11%, as Farxiga became the Company’s largest-selling Diabetes medicine
  •   Japan: A sales decline of 3% to $2,184m, reflecting the biennial price reduction in the year
  •   Brilinta : Sales grew by 39% to $839m; on track to be a blockbuster medicine
  •   Respiratory: A decline of 3% to $4,753m (Q4 2016: Down by 5%), reflecting US pricing pressure for Symbicort
  •   New Oncology: Strong sales of $664m (Q4 2016: $216m); Tagrisso delivered sales of $423m in its first year

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This information is provided by RNS
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About Us

AstraZeneca is a global, innovation-driven biopharmaceutical business with a primary focus on the discovery, development and commercialisation of prescription medicines. As a leader in gastrointestinal, cardiovascular, neuroscience, respiratory and inflammation, oncology and infectious disease medicines, AstraZeneca generated global revenues of US $32.8 billion in 2009. For more information please visit: www.astrazeneca.com