Astrazeneca appoints new CFO as third quarter revenues fall - UPDATE

31st Oct 2013 07:26

- New CFO appointed- Revenues and profits fall in Q3- Court trial over Pulmicort Respules patent continuesAstraZeneca announced the appointment of Marc Dunoyer as Chief Financial Officer as it reported a fall in third quarter revenue. Dunoyer, currently Executive Vice President, Global Portfolio and Product Strategy, joined AstraZeneca from GlaxoSmithKline in June 2013. He replaces Simon Lowth who leaves AstraZeneca on Thursday.At the same time the pharmaceutical company said its revenues were down due to the impact from loss of patent protection on key drugs.AstraZeneca has been fighting against a US court ruling that a patent protecting its asthma medicine Pulmicort Respules against generic brands is invalid. The company announced today that the US Court of Appeals for the Federal Circuit has reversed and remanded for further proceedings of the trial court decision. During the third quarter, core operating profit dropped 29% to $2.02bn as core earnings per share dipped 26% to $1.21."We continue to focus on the strategic priorities of returning to growth and achieving scientific leadership, and this is reflected in continued investment in our growth platforms and our pipeline," said Chief Executive Officer, Pascal Soriot."I am pleased with the progress we are making, particularly on the pipeline, with three regulatory filings, three Phase III starts and four business development transactions since our last update. As expected, our financial performance this year reflects the ongoing impact from the loss of exclusivity for several key brands."The group reiterated its expectation for a mid-to-high single digit percentage fall in revenue this year. Earnings are anticipated to fall significantly more, due to rising research and marketing costs."Any disappointment from today's miss should be moderated by news on a significant patent litigation victory," said Panmure Gordon. "New CFO appointed from within, we expect him to be more strategic than technocratic but this is probably what the company needs at this stage."The broker reiterated its 'hold' recommendation.Shares fell 1.26% to 3,288p at 08:05 on Thursday.RD