A delay to generic competition in the US for big-selling gastrointestinal drug Nexium helped AstraZeneca (AZ) post a healthy rise in third-quarter revenues, although profit came under pressure.
The quarter had been expected to be a tough one for AZ with a dramatic fall-off in Nexium (esomeprazole) sales, but the drug managed a small rise to $922m as manufacturing compliance problems prevented Ranbaxy from launching a generic version of the drug.
As a result AZ was able to post a 5% increase in revenues to $6.54bn, reversing a series of revenue declines in recent quarters, although operating profit slipped 13% to $1.77bn as a result of AZ’s heavy investments in its pipeline in recent months, particularly in the area of immuno-oncology.
Nexium’s stability complemented by a strong performance for antiplatelet drug Brilinta/Brilique (ticagrelor), which grew 78% to $127m helped by the resolution of a US probe into the reliability of clinical trial data for the drug.
Onglyza (saxagliptin) for diabetes had a great quarter, bringing in $220m, a 139% hike on last year. Overall, AZ’s diabetes franchise doubled in size compared to the third quarter of 2013, but that relates in large part to AZ buying Bristol-Myers Squibb (BMS) out of their diabetes alliance in the interim.
There were also good performances for AZ’s respiratory portfolio – headed by Symbicort (budesonide and formoterol) for asthma and chronic obstructive pulmonary disease (COPD) which grew 15% to $967m – as well as its cancer products.
“Brilinta, respiratory and diabetes – our three core franchises – increased sales by 38% in the quarter,” said AZ’s chief executive Pascal Soriot, who said the increased revenues would be ploughed back into the company’s “growth platforms and expanding pipeline.” The company will showcase its R&D portfolio at an investor day later this month.
A good showing in the third quarter is a fillip for AZ as the moratorium period for a takeover by from Pfizer comes to an end this month. Pfizer backed away from a rejected £69bn ($120bn) takeover bid for AZ earlier this year – leading to a six-month block on a second offer that comes to an end on November 18 – although the changing rules on tax inversion in the US could make a new approach less attractive.
Meanwhile, AZ also said it is selling Myalept (metreleptin), an approved drug for generalised lipodystrophy, to Aegerion Pharmaceuticals. The latter will pay $325m upfront to acquire the global rights to Myalept, subject to an existing distributor licence with Shionogi covering Japan, South Korea, and Taiwan.