Pascal Soriot, Chief Executive Officer, commenting on the results, said:
“2014 was a remarkable year for AstraZeneca. We achieved a record six product approvals as we accelerated our pipeline across all main therapy areas. Alongside this, we delivered four quarters of revenue growth, with growth platforms now contributing over half of our revenues. Our strong performance in Emerging Markets is a particular highlight, with China becoming our second largest national market, while the delay in the introduction of Nexium generics in the US helped to direct additional investment towards our launch brands and our rapidly advancing pipeline.
“Our guidance for 2015 reflects our focus on creating value by investing in our new brands and exciting pipeline while we continue improving productivity to protect our profitability in the face of patent expiries. With the depth of our science and the momentum we have built across our organisation, we are on track to return to growth by 2017 and are well positioned to deliver our long-term goals.”
Fourth quarter and full year results 2014
Announced on Thursday 5 February 2015
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Highlights
Financial results for 2014 in line with upgraded Company guidance given with third quarter 2014 results.
- Full year revenue up 3% at constant exchange rates (CER)1 to $26,095m.
- A change in accounting for the US Branded Pharmaceutical Fee reduced revenue by $113m;
excluding this effect growth was 4%.
- A change in accounting for the US Branded Pharmaceutical Fee reduced revenue by $113m;
- Core EPS for the full year was $4.28, down 8%, following investment in the growth platforms and accelerated pipeline.
- Fourth quarter revenue up 2% to $6,683m: fourth consecutive quarter of revenue growth.
- Core EPS for the quarter was $0.76, down 28%.
Growth platforms up 15% in 2014, contributing 53% of total revenue.
- Brilinta: +70%, continued global progress.
- Diabetes: +139%, successful integration of BMS assets, strong Farxiga/Forxiga launch and good uptake of new Bydureon Pen in the US.
- Respiratory: +10%, with Emerging Markets growth of 27% and decelerating US growth of 15%.
- Emerging Markets: +12%, with China growth of 22%, making China AstraZeneca’s second largest national market.
- Japan: -3%, due to mandated price cuts, increased use of generics and Nexium recall in the fourth quarter.
Pipeline progress since Q3 2014 results:
- Duaklir Genuair: EU approval for COPD. Brodalumab2: superior to ustekinumab in second and third pivotal Phase III studies in psoriasis. Lesinurad: submission for gout treatment accepted in the EU.
- Brilinta: PEGASUS study met its primary endpoints. Saxagliptin/dapagliflozin FDC: filed in the US.
- Lynparza: US and EU approvals for advanced BRCA-mutated ovarian cancer. Iressa: NDA accepted.
- Moventig: EU approval for opioid-induced constipation. Movantik: descheduled by the US DEA.
The Board has declared a second interim dividend of $1.90 per share, bringing the dividend for the full year to $2.80. The Board reaffirms its commitment to the Company’s progressive dividend policy.
2015 Guidance: Sales revenue is expected to decline by mid single-digit percent at CER3. Consistent with its business model, the Company will continue to seek externalisation revenue from partnerships and licensing select products and technologies. Core EPS is expected to increase by low single-digit percent at CER.
2015 Newsflow:
- Pivotal data: MEDI4736 3L NSCLC; tremelimumab mesothelioma; selumetinib uveal melanoma; PT003 COPD.
- Filings: AZD9291 2L NSCLC; cediranib ovarian cancer (EU); brodalumab psoriasis.
- Potential approval decisions: saxagliptin/dapagliflozin FDC; Iressa; lesinurad.
1 All growth rates are shown at CER unless specified otherwise.
2 Brodalumab developed in collaboration with Amgen.
3 Assumes imminent launch of a Nexium generic in the US market.