AstraZeneca share price: Pharmco’s first-quarter sales fall

on Apr 27, 2017
Updated: Oct 21, 2019
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AstraZeneca (LON:AZN) has updated investors on its first-quarter performance this morning, posting a drop in sales.

**Highlights from the company statement:**
· The Product Sales performance mainly reflected the residual impact of the US Crestor patent expiry
· One third of Externalisation Revenue was represented by sustainable and ongoing income4
· Continued good progress on cost control, reflecting the evolving shape of the business:
– Reported R&D costs declined by 2% (up by 2% at CER) to $1,453m; Core R&D costs declined by 6% (3% at CER) to $1,338m

– Reported SG&A costs declined by 11% (8% at CER) to $2,300m; Core SG&A costs declined by 14% (12% at CER) to $1,829m
· Reported EPS declined by 17% (35% at CER); Core EPS increased by 4% (down by 4% at CER)
· Financial guidance for 2017 confirmed
Pascal Soriot, Chief Executive Officer, commenting on the results said:
“Our good start to the year supported our guidance for 2017. Notably, Emerging Markets became our largest region, representing 32% of sales. The pipeline continued to deliver in what we expect will be a pivotal year for AstraZeneca as we announced important developments, in particular in Oncology. In addition to the availability of positive data for Lynparza in ovarian and breast cancer, we also received full approvals in the US and Europe for Tagrisso in lung cancer and launched this important medicine in record time in China. While we were disappointed to receive the Complete Response Letter for ZS-9, we remain confident in this treatment for hyperkalaemia.

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“The Total Revenue performance reflected the transitional impact of recent patent expiries, which is expected to recede in the second half of the year. Importantly, we anticipate the significant progress of the pipeline to continue, including our Immuno-Oncology and targeted treatments. We will also maintain our commitment to drive efficiency across the company to support our efforts to bring new medicines to patients.”
As of 07:10 BST, Thursday, 27 April, AstraZeneca plc share price is 4,686.05p.

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