AstraZeneca desire to implement a new diabetes drugs and new uses for existing blockbuster drugs, Seroquel, Crestor and Nexium as the fight against drugs at the elbow pipe, and lackluster sales.
The Anglo-Swedish pharmaceutical manufacturer has suffered setbacks in recent months. E ‘down his Motavizumab a drug used to prevent a serious lung disease that leads to $ 445m (£ 280m) write-downs and the approval of its heart drug Brilinta was further delayed in the United States. Turnover this year is affected by competition from generics after the patent for the breast cancer treatment Arimidex.
AstraZeneca reported a 2% rise in 2010 pre-tax profits to $10.98bn (£6.9bn) today, with sales edging up 1% to $33.3bn. Sales of cholesterol drug Crestor and Seroquel, used to treat bipolar disorder, both topped $5bn for the first time. Sales in emerging markets also exceeded $5bn for the first time, offsetting a 7% drop in the US due to generic competition.
One of AstraZeneca’s promising new medicines is the diabetes drug dapagliflozin, which it is developing with Bristol Myers-Squibb. Dapagliflozin has been submitted for regulatory approval in both the US and Europe, and, barring any problems, could be on the market next year.
Zinforo, an antibiotic for complicated skin infections and hospital-acquired pneumonia, is also awaiting regulatory approval. Its sales buy
David Brennan, chief executive, launched a major overhaul of AstraZeneca’s research and development arm last year. The company is closing sites in Southborough and in Lund, Sweden.
For the first time since 2004, the drugs pipeline has been reduced. “Pipelines were getting bigger and bigger … the fact is we didn’t get much out at the other end,” said Martin Mackay, the new head of R&D, who was brought in last July. He said dramatic change had been needed and that he and his team had reviewed every single program me. Some 34 projects were discontinued.
Verdult Peter Morgan Stanley said: “Although AstraZeneca is facing challenging revenue outlook, we believe earnings and cash flow will exceed the expectations of operational excellence.”
Others were more skeptical. “The key issue is the fact that AstraZeneca has the least number of sustainable businesses in our universe of coverage, and only the image, where we expect a significant drop in sales in 2020 than today,” said Dominic Valder Evolution Securities.
The company has tried to please investors, double its share buyback program to $ 4 billion to U.S. $ 2.1 billion last year.