AstraZeneca Profits Drop in Q2

July 26, 2012
Revenues meanwhile slumped 2% to $6.66 billion.

Pharmaceuticals giant AstraZeneca (IW1000/119) said Thursday that second-quarter profits sank, hit by the expiry of key drug patents, tough conditions and competition from generic drugmakers.

Earnings after taxation dived 24% to $1.61 billion in the three months to the end of June, compared with $2.11 billion in the same period of 2011, AstaZeneca said .

"Generic competition and challenging market conditions reflected in lower second quarter revenues," AstraZeneca said in the earnings release.

Revenues meanwhile slumped 2% to $6.66 billion over the reporting period, caused largely by the loss of patent protection on key drugs.

"As we expected, the loss of exclusivity on some key brands and tough market conditions have resulted in a decline in revenue and earnings in the second quarter," added interim chief executive Simon Lowth.

AstraZeneca is searching for a new permanent chief executive after David Brennan left the company at the start of June. Lowth, who is chief financial officer, is Brennan's temporary replacement.

The company faces crucial patent expiries between 2012 and 2015 on drugs such as schizophrenia treatment Seroquel and heartburn and ulcer drug Nexium.

It will also suffer the loss of patent protection in the United States for its best-selling anti-cholesterol drug, Crestor, in 2016.

Copyright Agence France-Presse, 2012

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!