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 | ||||
| CER1 | 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 Profit2 | 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 blockbuster3 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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