AstraZeneca (AZN) Beats On Q4 Earnings, Guides For 2018

AstraZeneca plc (AZN – Free Report) reported fourth-quarter 2017 core earnings of 65 cents per American Depositary Share (ADS), which beat the Zacks Consensus Estimate of 45 cents. Core earnings rose 13% year over year at constant exchange rates (CER). Higher product sales boosted profits in the quarter.

Total revenues rose 2% at CER to $5.78 billion in the reported quarter. Revenues also beat the Zacks Consensus Estimate of $5.59 billion. Revenue growth, however, was partially offset by decrease in externalization revenues.

Meanwhile, product sales rose 3% at CER in the quarter due to better performance of new products, partially offset by lower sales of legacy products.

Key growth platforms (representing 68% of total revenues) were up 12% in the quarter at CER. Among the key growth platforms, Emerging Markets, New Cardiovascular & Metabolic Diseases (“CVMD”), New Oncology and Japan performed well in the quarter.

All growth rates mentioned below are on a year-over-year basis and at CER.

Product Sales Impress

Crestor sales declined 7% to $594 million with sales in Europe down due to the entry of multiple generic versions of the drug in the market. The negative impact is expected to continue in Europe in 2018.

Seroquel XR sales declined 9% to $108 million due to competition from generic launches.

In the quarter, Onglyza sales rose 19% to $180 million driven by growth in emerging markets.

Symbicort sales remained flat in the quarter at $752 million as higher sales in emerging market were offset by lower sales in the United States. U.S. sales declined due to continued pricing pressure from managed-care access within the ICS/LABA class and also competition from other class like LAMA/LABA combination medicines.

Nexium recorded sales of $427 million, down 12%.

Other than Crestor and Seroquel XR, other legacy products that recorded decline in the quarter include Zoladex (down 21% to $187 million), Seloken/Toprol-XL (down 7% to $168 million), Casodex (down 8% to $54 million) and Atacand (down 10% to $73 million).