Generic drugs halt Astrazeneca’s growth
ANGLO-Swedish drugs giant Astrazeneca said that both sales and profits for the third quarter of its financial year dropped 2% – to $8.2bn (£.5.1bn) and $3.1bn (£1.9bn) respectively.
The firm said that sales for the first nine months of the year were 3% lower than 2010 on a constant exchange rate basis.
The company, which employs around 4,000 people in the North West, blamed an increase in competition from providers of generic drugs, which it said had cost the firm more than $350m in lost revenues. It also said that government price capping on some product ranges had impacted on margins.
Despite this, the firm said that products such as heart drug Crestor, antidepressant Seroquel and asthma treatmant Symbicourt had been selling well, and that it had enjoyed a 7% uplift in emerging markets, although competition from generics had pushed down sales in Western Europe by 15%.
Astrazeneca also revealed this morning that the US Food & Drug Administration had delayed a decision on whether or not it will approve Dapagliflozin – a new pill for the the treatment of diabetes which is a collaboration with Bristol Myers-Squibb, for a further three months until January 28, 2012.
Chief executive officer David Brennan said: “We have delivered a third quarter revenue and core earnings performance in line with our expectations, against the backdrop of anticipated generic competition and government price interventions.
“Our disciplined execution continues to generate strong cash returns, with dividends and net share repurchases well ahead of last year. We have also increased our core EPS target for the full year.”
