AstraZeneca bolsters revenue with Toprol-XL and H1N1 vaccine sales

Oct 29 2009

AstraZeneca (STO:AZN) (LSE:AZN) Third quarter revenue increased by 10 percent at constant exchange rates (CER) to $8,200 million.

-US sales of Toprol-XL, benefiting from withdrawal of generic products, accounted for 3 percent of global revenue growth at CER.
-US sales of Novel Influenza A (H1N1) vaccine totalled $152 million in the third quarter, accounting for 2 percent of global revenue growth at CER. -Emerging Markets revenue was up 15 percent at CER; on track for double-digit growth for the full year.

Core operating profit in the third quarter increased by 29 percent at CER to $3,609 million on revenue growth and operational efficiencies. Core EPS in the third quarter increased by 27 percent at CER to $1.68.

Reported EPS in the third quarter increased by 22 percent at CER to $1.46.
-Agreement in principle reached with the US Attorney’s Office in Philadelphia to resolve its investigations related to Seroquel sales and marketing practices. This accounts for $520 million of the $538 million provisions taken in the first nine months, $108 million of which taken in third quarter (see Note 4).

Strong cash flows have reduced net debt by $3,981 million since 31 December 2008.

Pipeline developments include:
-New diabetes treatment ONGLYZATM approved in the US and the European Union.
-Brilinta submitted for regulatory approval in the European Union; on track for US submission in the fourth quarter.
-New late stage development collaborations announced with Forest Laboratories and Nektar Therapeutics.
-Regulatory submissions for Zactima have been withdrawn, based upon an updated analysis that demonstrated no overall survival advantage when added to chemotherapy.

Core EPS target for the full year increased to range of $6.20 to $6.40.

Financial Summary [See links for tables: http://feed.ne.cision.com/wpyfs/00/00/00/00/00/0F/EA/23/wkr0011.pdf, http://feed.ne.cision.com/wpyfs/00/00/00/00/00/0F/EA/24/wkr0013.pdf]

David Brennan, Chief Executive Officer, said: “Our strong business performance is driven by good operating execution bolstered by revenue upsides from Toprol-XL and H1N1 vaccine sales. All these factors are reflected in our results for the first nine months and our increased Core EPS target for the full year. Since the half year we have made progress on the pipeline with the approval of ONGLYZATM, the European submission for Brilinta and new external collaborations, tempered by the disappointing news on Zactima.”