AstraZeneca's annual results hurt by generic rivals

6th Feb 2014 07:09

- Annual revenue and profit fall- Rival generic brands impact results- 2014 revenue expected to dropAstraZeneca's 2013 annual revenue fell six per cent to 25.7 dollars as the drug maker was hurt by competition from generic brands.The company lost exclusive rights on products including Seroquel IR, Atacand, Nexium and Merrem as regulators allowed rival generic brands onto the market. The group posted a core pre-tax profit of $1.85bn, down from $2.6bn in 2012. Core earnings per share were $5.05, down 26% from the prior year."As expected, our financial performance for 2013 reflects the ongoing impact from the loss of exclusivity for several key brands," said Chief Executive Pascal Soriot."In the near term these headwinds will remain challenging, however I am confident that we can return to growth faster than anticipated and expect our 2017 revenues will be broadly in line with 2013."In an effort to boost results, the company has increased its pipeline of products and acquired Bristol-Myers Squibb's share of its diabetes alliance.The firm declared a second interim dividend of $1.90 per share, bringing the dividend for the full year to $2.80. Looking ahead, the company expects a low-to-mid single digit percentage decline in revenue at constant exchange rates (CER) for 2014.RD