London, 26 April 2012
First quarter results reflect challenging revenue
picture. Pipeline strengthened by Amgen collaboration, the agreement to acquire
Ardea Biosciences and positive CHMP opinion for FORXIGATM (dapagliflozin) in
Europe.
Revenue for the first quarter was $7,349 million, down 11 percent at
constant exchange rates (CER).
-Loss of exclusivity on several key brands
accounted for 8 percentage points of the revenue decline, which included the
recognition of a $223 million returns reserve against US trade inventories of
Seroquel IR following generic launches at the end of March 2012.
-Emerging
Markets revenue increased by 1 percent at CER, reflecting the quarterly phasing
that the Company anticipated. Company anticipates a rebound in the remaining
three quarters, but achieving double-digit growth for the full year may be a
challenge.
Core EPS was $1.81 in the first quarter, a 19 percent decline
at CER compared with the first quarter last year, which benefited by $0.46 from
two one-off gains. Excluding these gains, Core EPS would have increased by 2
percent compared with last year.
-Core gross margin in the first quarter 2011
included a $131 million benefit ($0.07 per share) from settlement of patent
disputes with PDL BioPharma, Inc.
-Core EPS in the first quarter 2011
benefited by $0.39 as a result of agreements reached between the UK and US
governments over certain tax matters.
The third phase of the restructuring
programme is being implemented with pace, reflected in the $702 million in
restructuring costs taken in the first quarter.
Reported EPS was down 39
percent at CER to $1.28.
-Decline in Reported EPS is significantly larger
than the decline in Core EPS, largely the result of restructuring costs that
were $0.37 higher than the first quarter 2011.
Net cash distributions to
shareholders in the first quarter were $3,417 million, through dividend payments
of $2,505 million and net share repurchases of $912 million.
Core EPS target
range for the full year lowered to $5.85 to $6.15.
Financial
Summary
+-----------------------+-------+-------+------+---+
|Group
| 1st| 1st|Actual|CER|
| |Quarter|Quarter| %|
%|
| | 2012| 2011| | |
|
| $m| $m| | |
+-----------------------+-------+-------+------+--
-+
|Revenue | 7,349| 8,292| -11|-11|
+---------------------
--+-------+-------+------+---+
|Reported | | | |
|
+-----------------------+-------+-------+------+---+
| Operating Profit
| 2,160| 3,401| -36|-37|
+-----------------------+-------+-------+------+--
-+
| Profit before Tax | 2,053| 3,288| -38|-38|
+---------------------
--+-------+-------+------+---+
| Earnings per Share| $1.28| $2.08| -38|
-39|
+-----------------------+-------+-------+------+---+
|Core*
| | | | |
+-----------------------+-------+-------+------+--
-+
| Operating Profit | 2,997| 3,678| -19|-18|
+---------------------
--+-------+-------+------+---+
| Profit before Tax | 2,890| 3,565| -19|
-19|
+-----------------------+-------+-------+------+---+
| Earnings per
Share| $1.81| $2.23| -19|-19|
+-----------------------+-------+-------+----
--+---+
| | | | | |
+----------------
-------+-------+-------+------+---+
* Core financial measures are
supplemental non-GAAP measures which management believe enhance understanding of
the Company’s performance; it is upon these measures that financial guidance for
2012 is based. See page 2 for a definition of Core financial measures and a
reconciliation of Core to Reported financial measures.
David Brennan,
Chief Executive Officer, commenting on the results, said: “The anticipated
impact from the loss of exclusivity on several brands, together with challenging
market conditions, has made for a difficult start to the year in revenue terms.
Delivery on our restructuring plans and continued discipline on operating costs,
together with the benefits from a lower tax rate, will only partially mitigate
the revenue pressures. As a result we have lowered our Core EPS target for the
full year to the range of $5.85 to $6.15.”
“The recently announced
collaboration with Amgen on a portfolio of five clinical stage projects in the
field of inflammation illustrates our willingness to look beyond our
laboratories to invest in innovative science wherever it originates. Our
agreement to acquire Ardea Biosciences will add a promising Phase III project
for the chronic management of hyperuricaemia in patients with gout. Lastly, we
are pleased that the European Union’s CHMP has issued a positive recommendation
for regulatory approval for FORXIGA™ (dapagliflozin); together with our partner
Bristol-Myers Squibb we look forward to making this new medicine available to
patients with diabetes,” Brennan said.
CONTACT INFORMATION
Media
Esra Erkal-Paler (London) +44 20 7604 8030
Enquiries:
Sarah Lindgreen (London) +44 20 7604 8033
Tony Jewell
(Wilmington) +1 302 885 4594
Ann-Leena Mikiver
(Södertälje) +46 8 553 260 20/+46 707 428836
Analyst/Invest James Ward
-Lilley (London) +44 20 7604 8122
or Enquiries:
Karl Hård
(London) +44 20 7604 8123
Nicklas Westerholm
(London) +44 20 7604 8124
Ed Seage/Jörgen Winroth (US)
+1 302 886 4065/+1 212 579 0506
FIRST QUARTER RESULTS 2012
| Source: AstraZeneca PLC
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