Global pharmaceutical enterprises have successively published their 2017 financial reports recently, and there were good and poor results: companies with full-year total revenue growing by more than 10%, and certainly, companies with revenue decline. And AstraZeneca belongs to the latter.
AstraZeneca published its 2017 financial report on February 1, 2018, with the full-year total revenue of USD 22.465 billion (down by 2%), wherein, the total drug sales were USD 20.152 billion (down by 5%). We can imagine the disappointment of investors when hearing the news, however, AstraZeneca CEO Pascal Soriot promised that it would only take one year for them to achieve growth as he saw the huge emerging market in China and several drugs with quite good growth trends in 2017.
2017 financial report of AstraZeneca
AstraZeneca published its 2017 full-year and 2017 Q4 financial reports on February 1, 2018, with the total revenue down by 2% to USD 22.465 billion compared to 2016, which the investors were clearly unsatisfactory with in the fierce competitive environment. The drug sales were down by 5% in the year, from USD 21.319 billion to USD 20.152 billion, and other external revenue (advance, share from sales, and milestone payment, etc.) was USD 2.313 billion, growing by 37%.
Table 1 Total Revenue of AstraZeneca in 2017
|
|
2017 |
2017 Q4 |
||
|
Amount (USD 100 million) |
Growth (%) |
Amount (USD 100 million) |
Growth (%) |
|
|
Total revenue |
224.65 |
-2 |
57.77 |
3 |
|
Drug sales |
201.52 |
-5 |
54.87 |
4 |
|
Other external revenue |
23.13 |
37 |
2.9 |
-11 |
From the perspective of drug sales of AstraZeneca alone, the growth of 2017 Q4 was 4%, and that of 2017 Q1, Q2, and Q3 was separately -13%, -10%, and -3%. The negative growth gradually decreased from Q1 to Q3, and positive growth appeared in Q4, which was a good trend. With such trend kept, AstraZeneca would have no problem in achieving sales growth in 2018.
AstraZeneca’s CEO Pascal Soriot was full of confidence in the 2018 performance and commented on the financial report as follows: "AstraZeneca’s revenues improved over the course of the year, a sign of how our company is steadily turning a corner. Strong commercial execution helped us bring our science to more patients, making the most of our exciting pipeline. We made encouraging progress across the main therapy areas and delivered strong growth in China."
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