1.
|
Press release entitled, “AstraZeneca suspends share repurchase programme, Core EPS target in the range of $6.00 and $6.30 unchanged”, dated 1 October 2012.
|
2.
|
Press release entitled, “Transparency Directive Voting Rights and Capital”, dated 1 October 2012.
|
3.
|
Press release entitled, “AstraZeneca Third Quarter & Nine Months Results 2012”, dated 24 October 2012.
|
4.
|
Press release entitled, “AstraZeneca PLC Third Quarter and Nine months Results 2012”, dated 25 October 2012.
|
5.
|
Press release entitled, “Transaction by Person Discharging Managerial Responsibilities Disclosure Rule DTR 3.1.4.”, dated 29 October 2012.
|
6.
|
Press release entitled, “Transactions by Person Discharging Managerial Responsibilities Disclosure Rule DTR 3.1.4.”, dated 29 October 2012.
|
AstraZeneca PLC | |||
Date: 6 November 2012
|
By: | /s/ Adrian Kemp | |
Name: Adrian Kemp
|
|||
Title: Company Secretary
|
Esra Erkal-Paler
|
+44 207 604 8030
|
Sarah Lindgreen
|
+44 20 7604 8033
|
Media Enquiries Sweden
|
|
Ann-Leena Mikiver | +46 8 553 260 20 |
Investor Enquiries
UK
|
||
James Ward-Lilley
Karl Hård
|
+44 207 604 8122
+44 20 7604 8123
|
mob: +44 7785 432613
mob: +44 7789 654364
|
Nicklas Westerholm
US
|
+44 20 7604 8124
|
mob: +44 7585 404950
|
1)
|
Audio webcast available at http://www.astrazeneca.com/investors and http://info.astrazenecaevents.com. You will be able to email questions to the presenters during the Q&A session.
|
2)
|
Teleconference with Q&A.
|
Group
|
3rd Quarter
2012
$m
|
3rd Quarter
2011
$m
|
Actual
%
|
CER
%
|
9 Months
2012
$m
|
9 Months
2011
$m
|
Actual
%
|
CER
%
|
|
Revenue
|
6,682
|
8,213
|
-19
|
-15
|
20,691
|
24,935
|
-17
|
-15
|
|
Reported
|
|||||||||
Operating Profit
|
2,156
|
4,262
|
-49
|
-47
|
6,184
|
10,628
|
-42
|
-40
|
|
Profit before Tax
|
2,048
|
4,169
|
-51
|
-48
|
5,864
|
10,315
|
-43
|
-41
|
|
Earnings per Share
|
$1.22
|
$2.56
|
-53
|
-50
|
$3.77
|
$6.17
|
-39
|
-36
|
|
Core*
|
|||||||||
Operating Profit
|
2,632
|
3,177
|
-17
|
-14
|
7,898
|
10,177
|
-22
|
-20
|
|
Profit before Tax
|
2,524
|
3,084
|
-18
|
-15
|
7,578
|
9,864
|
-23
|
-21
|
|
Earnings per Share
|
$1.51
|
$1.71
|
-12
|
-8
|
$4.85
|
$5.67
|
-14
|
-11
|
*
|
Core financial measures are supplemental non-GAAP measures which management believe enhance understanding of the Company’s performance; it is upon these measures that financial guidance for 2012 is based. See pages 2 & 4 for a definition of Core financial measures and a reconciliation of Core to Reported financial measures. An update on the Group’s change to the definition of Core financial measures, with effect from the first quarter 2013, is provided on page 6.
|
Reported
2012
|
Restructuring
|
Merck &
MedImmune
Amortisation
|
Intangible
Impairments
|
Legal
Provisions
& Other
|
Core
2012
|
Core
2011
|
Actual
%
|
CER
%
|
|
Revenue
|
6,682
|
-
|
-
|
-
|
-
|
6,682
|
8,213
|
(19)
|
(15)
|
Cost of Sales
|
(1,274)
|
14
|
-
|
-
|
-
|
(1,260)
|
(1,607)
|
(22)
|
(14)
|
Gross Profit
|
5,408
|
14
|
-
|
-
|
-
|
5,422
|
6,606
|
(18)
|
(15)
|
% sales
|
80.9%
|
81.1%
|
80.4%
|
+0.7
|
-0.1
|
||||
Distribution
|
(90)
|
-
|
-
|
-
|
-
|
(90)
|
(93)
|
(3)
|
2
|
% sales
|
1.3%
|
1.3%
|
1.1%
|
-0.2
|
-0.2
|
||||
R&D
|
(1,204)
|
116
|
-
|
-
|
-
|
(1,088)
|
(1,150)
|
(5)
|
(3)
|
% sales
|
18.0%
|
16.3%
|
14.0%
|
-2.3
|
-1.9
|
||||
SG&A
|
(2,359)
|
123
|
151
|
-
|
57
|
(2,028)
|
(2,395)
|
(15)
|
(12)
|
% sales
|
35.3%
|
30.3%
|
29.1%
|
-1.2
|
-1.0
|
||||
Other Income
|
401
|
-
|
15
|
-
|
-
|
416
|
209
|
+99
|
+103
|
% sales
|
6.0%
|
6.2%
|
2.5%
|
+3.7
|
+3.5
|
||||
Operating Profit
|
2,156
|
253
|
166*
|
-
|
57
|
2,632
|
3,177
|
(17)
|
(14)
|
% sales
|
32.3%
|
39.4%
|
38.7%
|
+0.7
|
+0.3
|
||||
Net Finance Expense
|
(108)
|
-
|
-
|
-
|
-
|
(108)
|
(93)
|
||
Profit before Tax
|
2,048
|
253
|
166
|
-
|
57
|
2,524
|
3,084
|
(18)
|
(15)
|
Taxation
|
(515)
|
(70)
|
(23)*
|
-
|
(24)**
|
(632)
|
(777)
|
||
Profit after Tax
|
1,533
|
183
|
143
|
-
|
33
|
1,892
|
2,307
|
(18)
|
(15)
|
Non-controlling Interests
|
(8)
|
-
|
-
|
-
|
-
|
(8)
|
(8)
|
||
Net Profit
|
1,525
|
183
|
143
|
-
|
33
|
1,884
|
2,299
|
(18)
|
(15)
|
Weighted Average Shares
|
1,250
|
1,250
|
1,250
|
1,250
|
1,250
|
1,250
|
1,354
|
||
Earnings per Share
|
1.22
|
0.15
|
0.11
|
-
|
0.03
|
1.51
|
1.71
|
(12)
|
(8)
|
*
|
Of the $166 million amortisation adjustment, $91 million is related to MedImmune, with a corresponding tax adjustment of $23 million; Merck related amortisation was $75 million, which carries no tax adjustment.
|
**
|
Includes $11 million tax adjustment on the $50 million acquisition related expenses incurred in the second quarter.
|
Reported
2012
|
Restructuring
|
Merck &
MedImmune
Amortisation
|
Intangible
Impairments
|
Legal
Provisions
& Other
|
Core
2012
|
Core
2011
|
Actual
%
|
CER
%
|
|
Revenue
|
20,691
|
-
|
-
|
-
|
-
|
20,691
|
24,935
|
(17)
|
(15)
|
Cost of Sales
|
(3,995)
|
75
|
-
|
-
|
-
|
(3,920)
|
(4,396)
|
(11)
|
(9)
|
Gross Profit
|
16,696
|
75
|
-
|
-
|
-
|
16,771
|
20,539
|
(18)
|
(16)
|
% sales
|
80.7%
|
81.1%
|
82.4%
|
-1.3
|
-1.2
|
||||
Distribution
|
(241)
|
-
|
-
|
-
|
-
|
(241)
|
(261)
|
(8)
|
(4)
|
% sales
|
1.2%
|
1.2%
|
1.0%
|
-0.2
|
-0.1
|
||||
R&D
|
(3,923)
|
697
|
-
|
-
|
-
|
(3,226)
|
(3,341)
|
(3)
|
(2)
|
% sales
|
19.0%
|
15.6%
|
13.4%
|
-2.2
|
-2.1
|
||||
SG&A
|
(7,170)
|
388
|
384
|
-
|
127
|
(6,271)
|
(7,372)
|
(15)
|
(13)
|
% sales
|
34.6%
|
30.3%
|
29.6%
|
-0.7
|
-0.7
|
||||
Other Income
|
822
|
-
|
43
|
-
|
-
|
865
|
612
|
41
|
44
|
% sales
|
4.0%
|
4.2%
|
2.4%
|
+1.8
|
+1.7
|
||||
Operating Profit
|
6,184
|
1,160
|
427*
|
-
|
127**
|
7,898
|
10,177
|
(22)
|
(20)
|
% sales
|
29.9%
|
38.2%
|
40.8%
|
-2.6
|
-2.4
|
||||
Net Finance Expense
|
(320)
|
-
|
-
|
-
|
-
|
(320)
|
(313)
|
||
Profit before Tax
|
5,864
|
1,160
|
427
|
-
|
127
|
7,578
|
9,864
|
(23)
|
(21)
|
Taxation
|
(1,071)
|
(259)
|
(61)*
|
-
|
(28)
|
(1,419)
|
(2,031)
|
||
Profit after Tax
|
4,793
|
901
|
366
|
-
|
99
|
6,159
|
7,833
|
(21)
|
(19)
|
Non-controlling Interests
|
(17)
|
-
|
-
|
-
|
-
|
(17)
|
(26)
|
||
Net Profit
|
4,776
|
901
|
366
|
-
|
99
|
6,142
|
7,807
|
(21)
|
(19)
|
Weighted Average Shares
|
1,266
|
1,266
|
1,266
|
1,266
|
1,266
|
1,266
|
1,377
|
||
Earnings per Share
|
3.77
|
0.71
|
0.29
|
-
|
0.08
|
4.85
|
5.67
|
(14)
|
(11)
|
*
|
Of the $427 million amortisation adjustment, $272 million is related to MedImmune, with a corresponding tax adjustment of $61 million; Merck related amortisation was $155 million, which carries no tax adjustment.
|
**
|
Includes $61 million of acquisition related expenses.
|
Third Quarter
|
Nine Months
|
|||||
2012
|
2011
|
CER
|
2012
|
2011
|
CER
|
|
$m
|
$m
|
%
|
$m
|
$m
|
%
|
|
Gastrointestinal
|
||||||
Nexium
|
995
|
1,089
|
-6
|
2,897
|
3,362
|
-12
|
Losec/Prilosec
|
189
|
224
|
-13
|
554
|
698
|
-19
|
Cardiovascular
|
||||||
Crestor
|
1,544
|
1,659
|
-3
|
4,631
|
4,851
|
-2
|
ONGLYZATM
|
84
|
59
|
+42
|
235
|
140
|
+68
|
BYETTA®
|
27
|
-
|
n/m
|
27
|
-
|
n/m
|
BYDUREON®
|
11
|
-
|
n/m
|
11
|
-
|
n/m
|
Brilinta/Brilique
|
24
|
13
|
+100
|
51
|
16
|
+244
|
Atacand
|
221
|
364
|
-34
|
807
|
1,104
|
-23
|
Seloken /Toprol-XL
|
230
|
273
|
-11
|
662
|
750
|
-9
|
Respiratory & Inflammation
|
||||||
Symbicort
|
785
|
755
|
+11
|
2,303
|
2,309
|
+4
|
Pulmicort
|
191
|
185
|
+7
|
624
|
669
|
-5
|
Oncology
|
||||||
Zoladex
|
274
|
304
|
-5
|
822
|
881
|
-4
|
Arimidex
|
130
|
176
|
-22
|
421
|
590
|
-27
|
Casodex
|
111
|
137
|
-16
|
342
|
408
|
-15
|
Iressa
|
154
|
145
|
+11
|
451
|
405
|
+13
|
Faslodex
|
167
|
139
|
+28
|
479
|
397
|
+25
|
Caprelsa
|
7
|
2
|
n/m
|
19
|
4
|
n/m
|
Neuroscience
|
||||||
Seroquel
|
||||||
Seroquel IR
|
169
|
1,034
|
-83
|
1,200
|
3,190
|
-62
|
Seroquel XR
|
373
|
366
|
+8
|
1,127
|
1,092
|
+7
|
Zomig
|
41
|
108
|
-58
|
143
|
312
|
-52
|
Vimovo
|
14
|
10
|
+50
|
47
|
20
|
+145
|
Infection and other
|
||||||
Synagis
|
96
|
108
|
-11
|
535
|
564
|
-5
|
Merrem
|
90
|
139
|
-29
|
290
|
469
|
-34
|
FluMist
|
145
|
124
|
+17
|
149
|
127
|
+17
|
·
|
In the US, Nexium sales in the third quarter were $586 million, up 3 percent compared with the third quarter last year. Dispensed retail tablet volume declined by around 10 percent. A significant decline in low margin Medicaid prescriptions has resulted in an increase in average selling prices due to this change in mix. Nexium sales in the US for the nine months were down 6 percent to $1,675 million.
|
·
|
Nexium sales in other markets in the third quarter were down 15 percent to $409 million. Sales in Western Europe were down 34 percent, largely the result of generic competition. Sales in Established Rest of World were down 32 percent due to a 91 percent decline in Japan, where sales in the third quarter 2011 included launch stocking. Sales in Emerging Markets increased by 17 percent fuelled by a strong performance in China following resolution of supply chain issues earlier this year. Nexium sales in other markets were down 19 percent for the nine months to $1,222 million.
|
·
|
Losec sales in markets outside the US were down 13 percent in the third quarter to $181 million. Sales for the nine months were down 19 percent to $529 million.
|
·
|
In the US, Crestor sales in the third quarter were $833 million, up 11 percent. Total prescriptions for statin products in the US increased by 0.9 percent in the third quarter. Crestor total prescriptions were down 3.3 percent. Crestor total prescription demand has been resilient following the initial launch of generic atorvastatin in November of last year and the introduction of a larger number of generics upon the expiration of the 180-day exclusivity period at the end of May 2012. The small decline in total prescriptions is chiefly due to an unfavourable comparison to the prior year, where the label changes for simvastatin resulted in an uplift in switches to Crestor. Prescriptions in the current quarter also reflect the decision not to pursue the low margin Medicaid segment. Crestor sales for the nine months in the US were up 3 percent to $2,302 million.
|
·
|
Crestor sales in the Rest of World in the third quarter were down 15 percent to $711 million reflecting the loss of exclusivity in Canada in April 2012 arising from settlements of patent litigation. As a result, sales in Canada were down 83 percent in the third quarter. Excluding Canada, Rest of World sales increased by 2 percent, on growth in Emerging Markets and in Japan. Crestor sales in the Rest of World for the nine months were down 7 percent to $2,329 million.
|
·
|
Alliance revenue from the ONGLYZATM collaboration with Bristol-Myers Squibb was up 42 percent in the third quarter to $84 million, of which $62 million was in the US and $22 million in other markets. ONGLYZATM share of total prescriptions for DPP4 products in the US was 11.8 percent in September 2012. KOMBIGLYZE XRTM added a further 5.9 percent, bringing the total franchise share to 17.7 percent, up 1.2 percentage points since December 2011. Worldwide alliance revenue for the nine months was $235 million. Launches in Europe for KOMBOGLYZETM (saxagliptin and metformin HCl immediate-release fixed dose combination) are expected over the next several months.
|
·
|
Global sales of Brilinta/Brilique were $24 million in the third quarter, of which $15 million was in Western Europe. Nearly half of Western Europe sales were in Germany, where within the target hospitals where Brilique is on protocol, Brilique continues to be the leading oral antiplatelet for incident ACS patients, ahead of prasugrel and clopidogrel; Brilique is the number two product in retail dynamic market share, accounting for 9.7 percent of oral antiplatelet therapy.
|
·
|
Brilinta sales in the US in the third quarter were $7 million, in line with dispensed demand now that launch stocks have been largely worked down in the trade channels. We continue to make steady progress in terms of formulary access, protocol adoption and product trial rates by interventional cardiologists. Total prescriptions for Brilinta in the US in the third quarter were 55 percent higher than the second quarter 2012.
|
·
|
Global sales of Brilinta/Brilique were $51 million for the nine months.
|
·
|
US sales of Atacand were down 5 percent in the third quarter, to $42 million. Sales for the nine months were down 15 percent to $118 million.
|
·
|
Atacand sales in other markets were down 38 percent to $179 million in the third quarter, largely due to the loss of exclusivity in Western Europe, where sales were down 57 percent, and also in Canada, where sales were down 32 percent. Sales in the Rest of World for the nine months were $689 million, down 24 percent.
|
·
|
US sales of the Toprol-XL product range, which includes sales of the authorised generic, declined by 37 percent in the third quarter to $77 million, largely the result of lower selling prices following the launch of a third generic product late last year. Sales for the nine months in the US were down 30 percent to $222 million.
|
·
|
Sales of Seloken in other markets in the third quarter were up 10 percent to $153 million on 17 percent growth in Emerging Markets. Sales for the nine months were up 6 percent to $440 million.
|
·
|
Symbicort sales in the US were $264 million, a 31 percent increase over the third quarter last year. Total prescriptions for Symbicort were up 12 percent compared to a 2 percent increase in the market for fixed combination products. Symbicort share of total prescriptions for fixed combination products reached 21.5 percent in September 2012, up 1.2 percentage points since December 2011. Market share of patients newly starting combination therapy is 26.6 percent. Symbicort sales in the US for the nine months were up 21 percent to $730 million.
|
·
|
Symbicort sales in other markets in the third quarter were $521 million, up 4 percent. Sales in Western Europe were down 2 percent. Sales in Established Rest of World were up 21 percent, with sales in Japan up 62 percent reflecting the phasing of shipments to our marketing partner. Market share in Japan is up 4 percentage points since the beginning of the year. Sales in Emerging Markets were up 7 percent. Symbicort sales in the Rest of World for the nine months were down 2 percent to $1,573 million.
|
·
|
US sales of Pulmicort were up 17 percent in the third quarter to $61 million. Sales for the nine months were down 19 percent to $177 million.
|
·
|
Pulmicort sales in the Rest of World were up 3 percent in the third quarter to $130 million, largely on a 25 percent increase in China. Rest of World sales for Pulmicort for the nine months were $447 million, 2 percent higher than last year.
|
·
|
Arimidex sales in the US were $4 million in the third quarter, and were $17 million for the nine months.
|
·
|
Arimidex sales in the third quarter in the Rest of World were down 21 percent to $126 million. Sales in Western Europe were down 43 percent in the quarter to $27 million, reflecting the loss of exclusivity. Sales in Japan, which accounted for more than 40 percent of revenue in the quarter, were down 4 percent. Sales in Emerging Markets were down 8 percent. Arimidex sales for the nine months in the Rest of World were down 25 percent to $404 million.
|
·
|
Outside of the US, sales for Casodex in the third quarter were down 15 percent to $112 million. More than 60 percent of revenue is in Japan, where sales were down 19 percent in the third quarter. Sales were down 28 percent in Western Europe. Sales in Emerging Markets were up 3 percent. Casodex sales in the Rest of World for the nine months were $345 million, down 15 percent.
|
·
|
Iressa sales in the third quarter were up 11 percent to $154 million. Sales in Emerging Markets were up 8 percent. Sales in Western Europe were up 18 percent. Sales in Japan were up 8 percent. Worldwide sales of Iressa for the nine months increased 13 percent to $451 million.
|
·
|
Faslodex sales in the US in the third quarter were up 23 percent, reaching $80 million. Volume growth in the quarter reflects further penetration of the 500mg dosage regimen and an increase in the number of patients treated with Faslodex. US sales for the nine months were up 18 percent to $227 million.
|
·
|
Faslodex sales in the Rest of World were up 32 percent to $87 million in the third quarter, with Japan accounting for two-thirds of the increase on strong launch uptake. Sales in Western Europe were up 2 percent in the quarter, reflecting the impact of price cuts in France. Sales in Emerging Markets were up 26 percent. Sales in the Rest of World for the nine months increased 32 percent to $252 million.
|
·
|
In the US, sales of Seroquel IR were down 95 percent to $41 million in the quarter, due to the loss of exclusivity in March 2012. In the week ending 28 September, Seroquel IR share of total prescriptions for the quetiapine molecule had fallen to 4.7 percent. US sales of Seroquel IR for the nine months were down 71 percent to $709 million.
|
·
|
Sales of Seroquel XR in the US were up 10 percent to $202 million in the third quarter, largely due to price. Total prescriptions for Seroquel XR were down 8 percent, compared with 1 percent for the US antipsychotic market. US sales of Seroquel XR for the nine months were up 6 percent to $598 million.
|
·
|
Sales of Seroquel IR in the Rest of World were down 44 percent to $128 million in the third quarter, chiefly on a 73 percent decline in Western Europe. Sales in the Rest of World for Seroquel IR for the nine months were down 33 percent to $491 million.
|
·
|
Sales of Seroquel XR in the Rest of World were up 6 percent to $171 million in the third quarter. Sales in Western Europe were down 1 percent, chiefly the result of generic launches in some markets, partially offset by good launch progress in France. Seroquel XR sales were up 4 percent in Established Rest of World and were up 31 percent in Emerging Markets. Seroquel XR sales in the Rest of World for the nine months were $529 million, an increase of 8 percent over last year.
|
·
|
Zomig sales in the US were $3 million in the third quarter. US commercial rights for Zomig have been licensed to Impax Laboratories; AstraZeneca’s commercial contribution from Zomig in the US is now realised in other income, rather than in revenue. Zomig sales in the Rest of World were down 38 percent to $38 million in the quarter, chiefly on generic competition in Western Europe.
|
·
|
Sales of Vimovo in the third quarter were $14 million, comprised of $4 million in the US and $10 million in the Rest of World.
|
·
|
Synagis sales in the US were $5 million in the third quarter, which is out of season. Outside the US, sales in the third quarter were $91 million, down 9 percent. This follows a 26 percent increase in the second quarter; a reflection of the quarterly phasing of shipments to Abbott, our international distributor.
|
·
|
Sales of Merrem for the nine months were down 34 percent to $290 million as a result of generic competition in many markets.
|
·
|
Sales of FluMist in the third quarter were $145 million, of which $141 million were in the US and $4 million were in the Rest of World.
|
Third Quarter
|
Nine Months
|
% Change
|
||||||
2012
|
2011
|
% Change
|
2012
|
2011
|
||||
$m
|
$m
|
Actual
|
CER
|
$m
|
$m
|
Actual
|
CER
|
|
US
|
2,573
|
3,187
|
-19
|
-19
|
7,832
|
9,783
|
-20
|
-20
|
Western Europe1
|
1,461
|
2,067
|
-29
|
-20
|
4,862
|
6,496
|
-25
|
-20
|
Established ROW2
|
1,211
|
1,504
|
-19
|
-18
|
3,733
|
4,301
|
-13
|
-13
|
Canada
|
218
|
401
|
-46
|
-43
|
881
|
1,241
|
-29
|
-27
|
Japan
|
723
|
771
|
-6
|
-6
|
2,044
|
2,138
|
-4
|
-6
|
Other Established ROW
|
270
|
332
|
-19
|
-16
|
808
|
922
|
-12
|
-12
|
Emerging ROW3
|
1,437
|
1,455
|
-1
|
+6
|
4,264
|
4,355
|
-2
|
+3
|
Emerging Europe
|
264
|
291
|
-9
|
+4
|
841
|
927
|
-9
|
+1
|
China
|
399
|
322
|
+24
|
+23
|
1,128
|
947
|
+19
|
+16
|
Emerging Asia Pacific
|
226
|
248
|
-9
|
-4
|
688
|
732
|
-6
|
-3
|
Other Emerging ROW
|
548
|
594
|
-8
|
+3
|
1,607
|
1,749
|
-8
|
-1
|
Total
|
6,682
|
8,213
|
-19
|
-15
|
20,691
|
24,935
|
-17
|
-15
|
1Western Europe comprises France, Germany, Italy, Sweden, Spain, UK and others.
|
||||||||
2Established ROW comprises Canada, Japan, Australia and New Zealand.
|
||||||||
3Emerging ROW comprises Brazil, China, India, Mexico, Russia, Turkey and all other ROW countries.
|
·
|
In the US, revenue was down 19 percent in the third quarter, largely due to the loss of exclusivity for Seroquel IR. There was good revenue growth for Symbicort, Crestor, ONGLYZATM and Faslodex, partially offset by the disposals of Astra Tech and Aptium. Inclusion of the Company’s share of the Amylin diabetes products following completion of the expansion of our diabetes alliance with Bristol-Myers Squibb also contributed to third quarter revenues.
|
·
|
Revenue in Western Europe was down 20 percent in the third quarter. In addition to the loss of exclusivity for Seroquel IR, generic competition for Nexium, Atacand and Merrem also reduced revenue; these four products accounted for 70 percent of the revenue decline in the quarter. Products with revenue growth included Brilique, Crestor, ONGLYZATM and Iressa.
|
·
|
Revenue in Established Rest of World was down 18 percent in the third quarter. Revenue in Canada was down 43 percent, largely due to the entry of generic competition for Crestor in April, pursuant to the previously disclosed settlement of patent litigation. Revenue in Japan was down 6 percent, chiefly a reflection of lower Nexium sales compared to launch stocking sales in the third quarter last year.
|
·
|
Revenue in Emerging Markets was up 6 percent in the third quarter. Revenue growth was 23 percent in both China and Russia. Brazil returned to modest growth (up 5 percent), as the impact from the loss of exclusivity for Crestor and Seroquel IR is now behind us. A weak performance in Mexico (down 25 percent) reduced the revenue growth rate for Emerging Markets by more than 2 percentage points.
|
For the nine months ended 30 September
|
2012
$m
|
2011
$m
|
||
Revenue
|
20,691
|
24,935
|
||
Cost of sales
|
(3,995)
|
(4,414)
|
||
Gross profit
|
16,696
|
20,521
|
||
Distribution costs
|
(241)
|
(261)
|
||
Research and development
|
(3,923)
|
(3,656)
|
||
Selling, general and administrative costs
|
(7,170)
|
(8,020)
|
||
Other operating income and expense
|
822
|
2,044
|
||
Operating profit
|
6,184
|
10,628
|
||
Finance income
|
390
|
426
|
||
Finance expense
|
(710)
|
(739)
|
||
Profit before tax
|
5,864
|
10,315
|
||
Taxation
|
(1,071)
|
(1,792)
|
||
Profit for the period
|
4,793
|
8,523
|
||
Other comprehensive income:
|
||||
Foreign exchange arising on consolidation
|
215
|
21
|
||
Foreign exchange differences on borrowings forming net investment hedges
|
(25)
|
(25)
|
||
Amortisation of loss on cash flow hedge
|
1
|
2
|
||
Net available for sale gains/(losses) taken to equity
|
39
|
(5)
|
||
Actuarial loss for the period
|
(212)
|
(53)
|
||
Income tax relating to components of other comprehensive income
|
(4)
|
4
|
||
Other comprehensive income for the period, net of tax
|
14
|
(56)
|
||
Total comprehensive income for the period
|
4,807
|
8,467
|
||
Profit attributable to:
|
||||
Owners of the parent
|
4,776
|
8,497
|
||
Non-controlling interests
|
17
|
26
|
||
4,793
|
8,523
|
|||
Total comprehensive income attributable to:
|
||||
Owners of the parent
|
4,792
|
8,429
|
||
Non-controlling interests
|
15
|
38
|
||
4,807
|
8,467
|
|||
Basic earnings per $0.25 Ordinary Share
|
$3.77
|
$6.17
|
||
Diluted earnings per $0.25 Ordinary Share
|
$3.76
|
$6.14
|
||
Weighted average number of Ordinary Shares in issue (millions)
|
1,266
|
1,377
|
||
Diluted weighted average number of Ordinary Shares in issue (millions)
|
1,269
|
1,383
|
For the quarter ended 30 September
|
2012
$m
|
2011
$m
|
||
Revenue
|
6,682
|
8,213
|
||
Cost of sales
|
(1,274)
|
(1,593)
|
||
Gross profit
|
5,408
|
6,620
|
||
Distribution costs
|
(90)
|
(93)
|
||
Research and development
|
(1,204)
|
(1,296)
|
||
Selling, general and administrative costs
|
(2,359)
|
(2,644)
|
||
Other operating income and expense
|
401
|
1,675
|
||
Operating profit
|
2,156
|
4,262
|
||
Finance income
|
129
|
153
|
||
Finance expense
|
(237)
|
(246)
|
||
Profit before tax
|
2,048
|
4,169
|
||
Taxation
|
(515)
|
(684)
|
||
Profit for the period
|
1,533
|
3,485
|
||
Other comprehensive income:
|
||||
Foreign exchange arising on consolidation
|
195
|
(225)
|
||
Foreign exchange differences on borrowings forming net investment hedges
|
(45)
|
88
|
||
Amortisation of loss on cash flow hedge
|
-
|
1
|
||
Net available for sale gains/(losses) taken to equity
|
32
|
(23)
|
||
Actuarial gain/(loss) for the period
|
137
|
(209)
|
||
Income tax relating to components of other comprehensive income
|
(44)
|
10
|
||
Other comprehensive income for the period, net of tax
|
275
|
(358)
|
||
Total comprehensive income for the period
|
1,808
|
3,127
|
||
Profit attributable to:
|
||||
Owners of the parent
|
1,525
|
3,477
|
||
Non-controlling interests
|
8
|
8
|
||
1,533
|
3,485
|
|||
Total comprehensive income attributable to:
|
||||
Owners of the parent
|
1,797
|
3,111
|
||
Non-controlling interests
|
11
|
16
|
||
1,808
|
3,127
|
|||
Basic earnings per $0.25 Ordinary Share
|
$1.22
|
$2.56
|
||
Diluted earnings per $0.25 Ordinary Share
|
$1.21
|
$2.54
|
||
Weighted average number of Ordinary Shares in issue (millions)
|
1,250
|
1,354
|
||
Diluted weighted average number of Ordinary Shares in issue (millions)
|
1,252
|
1,359
|
At 30 Sep 2012
$m
|
At 31 Dec 2011
$m
|
At 30 Sep 2011
$m
|
||||
ASSETS
Non-current assets
|
||||||
Property, plant and equipment
|
6,094
|
6,425
|
6,526
|
|||
Goodwill
|
9,898
|
9,862
|
9,874
|
|||
Intangible assets
|
16,677
|
10,980
|
11,661
|
|||
Derivative financial instruments
|
330
|
342
|
355
|
|||
Other investments
|
172
|
201
|
207
|
|||
Deferred tax assets
|
1,248
|
1,514
|
1,486
|
|||
34,419
|
29,324
|
30,109
|
||||
Current assets
|
||||||
Inventories
|
2,090
|
1,852
|
1,955
|
|||
Trade and other receivables
|
8,001
|
8,754
|
8,308
|
|||
Other investments
|
799
|
4,248
|
924
|
|||
Derivative financial instruments
|
-
|
25
|
29
|
|||
Income tax receivable
|
1,122
|
1,056
|
1,391
|
|||
Cash and cash equivalents
|
6,017
|
7,571
|
9,860
|
|||
18,029
|
23,506
|
22,467
|
||||
Total assets
|
52,448
|
52,830
|
52,576
|
|||
LIABILITIES
Current liabilities
|
||||||
Interest-bearing loans and borrowings
|
(1,566)
|
(1,990)
|
(2,055)
|
|||
Trade and other payables
|
(8,629)
|
(8,975)
|
(8,028)
|
|||
Derivative financial instruments
|
(1)
|
(9)
|
-
|
|||
Provisions
|
(1,005)
|
(1,388)
|
(1,083)
|
|||
Income tax payable
|
(2,927)
|
(3,390)
|
(3,491)
|
|||
(14,128)
|
(15,752)
|
(14,657)
|
||||
Non-current liabilities
|
||||||
Interest-bearing loans and borrowings
|
(9,347)
|
(7,338)
|
(7,394)
|
|||
Deferred tax liabilities
|
(2,622)
|
(2,735)
|
(2,923)
|
|||
Retirement benefit obligations
|
(2,484)
|
(2,674)
|
(2,388)
|
|||
Provisions
|
(442)
|
(474)
|
(555)
|
|||
Other payables
|
(1,164)
|
(385)
|
(505)
|
|||
(16,059)
|
(13,606)
|
(13,765)
|
||||
Total liabilities
|
(30,187)
|
(29,358)
|
(28,422)
|
|||
Net assets
|
22,261
|
23,472
|
24,154
|
|||
EQUITY
|
||||||
Capital and reserves attributable to equity holders of the Company
|
||||||
Share capital
|
312
|
323
|
332
|
|||
Share premium account
|
3,437
|
3,078
|
3,048
|
|||
Other reserves
|
1,955
|
1,951
|
1,937
|
|||
Retained earnings
|
16,334
|
17,894
|
18,614
|
|||
22,038
|
23,246
|
23,931
|
||||
Non-controlling interests
|
223
|
226
|
223
|
|||
Total equity
|
22,261
|
23,472
|
24,154
|
For the nine months ended 30 September
|
2012
$m
|
2011
$m
|
||
Cash flows from operating activities
|
||||
Profit before taxation
|
5,864
|
10,315
|
||
Finance income and expense
|
320
|
313
|
||
Depreciation, amortisation and impairment
|
1,754
|
1,580
|
||
Increase in working capital and short-term provisions
|
(957)
|
(1,528)
|
||
Non-cash and other movements1
|
(388)
|
(1,806)
|
||
Cash generated from operations
|
6,593
|
8,874
|
||
Interest paid
|
(477)
|
(467)
|
||
Tax paid
|
(2,016)
|
(3,655)
|
||
Net cash inflow from operating activities
|
4,100
|
4,752
|
||
Cash flows from investing activities
|
||||
Movement in short-term investments and fixed deposits
|
3,631
|
542
|
||
Purchase of property, plant and equipment
|
(422)
|
(593)
|
||
Disposal of property, plant and equipment
|
159
|
56
|
||
Purchase of intangible assets
|
(3,633)
|
(326)
|
||
Purchase of non-current asset investments
|
(10)
|
(8)
|
||
Disposal of non-current asset investments
|
25
|
-
|
||
Acquisitions of business operations
|
(1,187)
|
-
|
||
Net cash received on disposal of subsidiaries
|
-
|
1,772
|
||
Interest received
|
112
|
131
|
||
Payments made by subsidiaries to non-controlling interests
|
(20)
|
(16)
|
||
Net cash (outflow)/inflow from investing activities
|
(1,345)
|
1,558
|
||
Net cash inflow before financing activities
|
2,755
|
6,310
|
||
Cash flows from financing activities
|
||||
Proceeds from issue of share capital
|
362
|
378
|
||
Repurchase of shares for cancellation
|
(2,635)
|
(4,256)
|
||
Issue of loans
|
1,980
|
-
|
||
Repayment of loans
|
(1,750)
|
-
|
||
Dividends paid
|
(3,665)
|
(3,764)
|
||
Movement in derivative financial instruments
|
48
|
3
|
||
Movement in short-term borrowings
|
1,262
|
(1)
|
||
Net cash outflow from financing activities
|
(4,398)
|
(7,640)
|
||
Net decrease in cash and cash equivalents in the period
|
(1,643)
|
(1,330)
|
||
Cash and cash equivalents at the beginning of the period
|
7,434
|
10,981
|
||
Exchange rate effects
|
10
|
(30)
|
||
Cash and cash equivalents at the end of the period
|
5,801
|
9,621
|
||
Cash and cash equivalents consists of:
|
||||
Cash and cash equivalents
|
6,017
|
9,860
|
||
Overdrafts
|
(216)
|
(239)
|
||
5,801
|
9,621
|
Share
capital
$m
|
Share
premium
account
$m
|
Other
reserves*
$m
|
Retained
earnings
$m
|
Total
$m
|
Non-
controlling
interests
$m
|
Total
equity
$m
|
||||||||
At 1 January 2011
|
352
|
2,672
|
1,917
|
18,272
|
23,213
|
197
|
23,410
|
|||||||
Profit for the period
|
-
|
-
|
-
|
8,497
|
8,497
|
26
|
8,523
|
|||||||
Other comprehensive income
|
-
|
-
|
-
|
(68)
|
(68)
|
12
|
(56)
|
|||||||
Transfer to other reserve
|
-
|
-
|
(2)
|
2
|
-
|
-
|
-
|
|||||||
Transactions with owners:
|
||||||||||||||
Dividends
|
-
|
-
|
-
|
(3,752)
|
(3,752)
|
-
|
(3,752)
|
|||||||
Issue of Ordinary shares
|
2
|
376
|
-
|
-
|
378
|
-
|
378
|
|||||||
Repurchase of Ordinary shares
|
(22)
|
-
|
22
|
(4,256)
|
(4,256)
|
-
|
(4,256)
|
|||||||
Share-based payments
|
-
|
-
|
-
|
(81)
|
(81)
|
-
|
(81)
|
|||||||
Transfer from non-controlling interests to payables
|
-
|
-
|
-
|
-
|
-
|
(8)
|
(8)
|
|||||||
Dividend paid to non-controlling interest
|
-
|
-
|
-
|
-
|
-
|
(4)
|
(4)
|
|||||||
Net movement
|
(20)
|
376
|
20
|
342
|
718
|
26
|
744
|
|||||||
At 30 September 2011
|
332
|
3,048
|
1,937
|
18,614
|
23,931
|
223
|
24,154
|
|||||||
Share
capital
$m
|
Share
premium
account
$m
|
Other
reserves*
$m
|
Retained
earnings
$m
|
Total
$m
|
Non-
controlling
interests
$m
|
Total
equity
$m
|
||||||||
At 1 January 2012
|
323
|
3,078
|
1,951
|
17,894
|
23,246
|
226
|
23,472
|
|||||||
Profit for the period
|
-
|
-
|
-
|
4,776
|
4,776
|
17
|
4,793
|
|||||||
Other comprehensive income
|
-
|
-
|
-
|
16
|
16
|
(2)
|
14
|
|||||||
Transfer to other reserve
|
-
|
-
|
(10)
|
10
|
-
|
-
|
-
|
|||||||
Transactions with owners:
|
||||||||||||||
Dividends
|
-
|
-
|
-
|
(3,619)
|
(3,619)
|
-
|
(3,619)
|
|||||||
Issue of Ordinary shares
|
3
|
359
|
-
|
-
|
362
|
-
|
362
|
|||||||
Repurchase of Ordinary shares
|
(14)
|
-
|
14
|
(2,635)
|
(2,635)
|
-
|
(2,635)
|
|||||||
Share-based payments
|
-
|
-
|
-
|
(108)
|
(108)
|
-
|
(108)
|
|||||||
Transfer from non-controlling interests to payables
|
-
|
-
|
-
|
-
|
-
|
(7)
|
(7)
|
|||||||
Dividend paid to non-controlling interests
|
-
|
-
|
-
|
-
|
-
|
(11)
|
(11)
|
|||||||
Net movement
|
(11)
|
359
|
4
|
(1,560)
|
(1,208)
|
(3)
|
(1,211)
|
|||||||
At 30 September 2012
|
312
|
3,437
|
1,955
|
16,334
|
22,038
|
223
|
22,261
|
1
|
BASIS OF PREPARATION AND ACCOUNTING POLICIES
|
2
|
NET DEBT
|
At 1 Jan
2012
$m
|
Cash
Flow
$m
|
Acquisitions
$m
|
Non-cash
mvmts
$m
|
Exchange
mvmts
$m
|
At 30 Sep
2012
$m
|
|||||||
Loans due after one year
|
(7,338)
|
(1,980)
|
-
|
(3)
|
(26)
|
(9,347)
|
||||||
Current instalments of loans
|
(1,769)
|
1,750
|
-
|
19
|
-
|
-
|
||||||
Total loans
|
(9,107)
|
(230)
|
-
|
16
|
(26)
|
(9,347)
|
||||||
Other investments - current
|
4,248
|
(3,631)
|
102
|
54
|
26
|
799
|
||||||
Net derivative financial instruments
|
358
|
(48)
|
-
|
19
|
-
|
329
|
||||||
Cash and cash equivalents
|
7,571
|
(1,566)
|
-
|
-
|
12
|
6,017
|
||||||
Overdrafts
|
(137)
|
(77)
|
-
|
-
|
(2)
|
(216)
|
||||||
Short-term borrowings
|
(84)
|
(1,262)
|
-
|
-
|
(4)
|
(1,350)
|
||||||
11,956
|
(6,584)
|
102
|
73
|
32
|
5,579
|
|||||||
Net funds/(debt)
|
2,849
|
(6,814)
|
102
|
89
|
6
|
(3,768)
|
3
|
RESTRUCTURING COSTS
|
3rd Quarter
2012
$m
|
3rd Quarter
2011
$m
|
9 Months
2012
$m
|
9 Months
2011
$m
|
|||||
Cost of sales
|
14
|
(14)
|
75
|
18
|
||||
Research and development
|
116
|
124
|
697
|
293
|
||||
Selling, general and administrative costs
|
123
|
111
|
388
|
191
|
||||
Total
|
253
|
221
|
1,160
|
502
|
4
|
COLLABORATION WITH BRISTOL-MYERS SQUIBB ON AMYLIN PRODUCTS
|
5
|
ARDEA ACQUISITION
|
Book value
$m
|
Fair value
adjustment
$m
|
Fair value
$m
|
||||
Non-current assets
|
||||||
Intangible assets
|
-
|
1,464
|
1,464
|
|||
Other
|
4
|
-
|
4
|
|||
4
|
1,464
|
1,468
|
||||
Current assets
|
199
|
-
|
199
|
|||
Current liabilities
|
(31)
|
(1)
|
(32)
|
|||
Non-current liabilities
|
||||||
Deferred tax liabilities
|
-
|
(397)
|
(397)
|
|||
-
|
(397)
|
(397)
|
||||
Total assets acquired
|
172
|
1,066
|
1,238
|
|||
Goodwill
|
30
|
|||||
Fair value of total consideration
|
1,268
|
|||||
Less: cash acquired
|
(81)
|
|||||
Cash outflow
|
1,187
|
6
|
ACCOUNTING IMPACT FROM MERCK ARRANGEMENTS
|
·
|
Annual contingent payments; and
|
·
|
Termination arrangements which cause Merck to relinquish its interests in AstraZeneca’s products and activities, some of which are mandatory and others optional.
|
7
|
LEGAL PROCEEDINGS AND CONTINGENT LIABILITIES
|
World
|
US
|
Western Europe
|
Established ROW
|
Emerging ROW
|
||||||||||||||||||||||||
9M 2012
$m
|
Actual
%
|
CER
%
|
9M 2012
$m
|
Actual
%
|
9M 2012
$m
|
Actual
%
|
CER
%
|
9M 2012
$m
|
Actual
%
|
CER
%
|
9M 2012
$m
|
Actual
%
|
CER
%
|
|||||||||||||||
Gastrointestinal:
|
||||||||||||||||||||||||||||
Nexium
|
2,897
|
(14)
|
(12)
|
1,675
|
(6)
|
325
|
(47)
|
(43)
|
329
|
(19)
|
(18)
|
568
|
3
|
8
|
||||||||||||||
Losec/Prilosec
|
554
|
(21)
|
(19)
|
25
|
(17)
|
156
|
(16)
|
(9)
|
239
|
(24)
|
(25)
|
134
|
(20)
|
(21)
|
||||||||||||||
Others
|
146
|
30
|
33
|
108
|
61
|
28
|
(20)
|
(14)
|
5
|
(17)
|
(17)
|
5
|
25
|
50
|
||||||||||||||
Total Gastrointestinal
|
3,597
|
(14)
|
(12)
|
1,808
|
(4)
|
509
|
(39)
|
(34)
|
573
|
(21)
|
(21)
|
707
|
(3)
|
1
|
||||||||||||||
Cardiovascular:
|
||||||||||||||||||||||||||||
Crestor
|
4,631
|
(5)
|
(2)
|
2,302
|
3
|
869
|
(6)
|
3
|
966
|
(19)
|
(19)
|
494
|
(2)
|
4
|
||||||||||||||
Atacand
|
807
|
(27)
|
(23)
|
118
|
(15)
|
359
|
(34)
|
(30)
|
109
|
(37)
|
(36)
|
221
|
(9)
|
(2)
|
||||||||||||||
Seloken/Toprol-XL
|
662
|
(12)
|
(9)
|
222
|
(30)
|
51
|
(19)
|
(13)
|
23
|
(18)
|
(18)
|
366
|
6
|
12
|
||||||||||||||
Tenormin
|
173
|
(14)
|
(11)
|
8
|
(11)
|
38
|
(16)
|
(9)
|
77
|
(15)
|
(16)
|
50
|
(12)
|
(5)
|
||||||||||||||
Plendil
|
189
|
(4)
|
(5)
|
4
|
(43)
|
14
|
(22)
|
(17)
|
9
|
(10)
|
(10)
|
162
|
1
|
(1)
|
||||||||||||||
ONGLYZATM
|
235
|
68
|
68
|
174
|
69
|
33
|
38
|
38
|
9
|
125
|
125
|
19
|
111
|
111
|
||||||||||||||
Brilinta/Brilique
|
51
|
219
|
244
|
10
|
(9)
|
33
|
n/m
|
n/m
|
1
|
n/m
|
n/m
|
7
|
n/m
|
n/m
|
||||||||||||||
BYETTA®
|
27
|
n/m
|
n/m
|
27
|
n/m
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||
BYDUREON®
|
11
|
n/m
|
n/m
|
11
|
n/m
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||
Others
|
253
|
(15)
|
(10)
|
12
|
50
|
117
|
(19)
|
(12)
|
23
|
(23)
|
(23)
|
101
|
(13)
|
(9)
|
||||||||||||||
Total Cardiovascular
|
7,039
|
(7)
|
(4)
|
2,888
|
2
|
1,514
|
(14)
|
(8)
|
1,217
|
(21)
|
(20)
|
1,420
|
(1)
|
4
|
||||||||||||||
Respiratory:
|
||||||||||||||||||||||||||||
Symbicort
|
2,303
|
-
|
4
|
730
|
21
|
967
|
(10)
|
(4)
|
294
|
-
|
1
|
312
|
(7)
|
1
|
||||||||||||||
Pulmicort
|
624
|
(7)
|
(5)
|
177
|
(19)
|
116
|
(19)
|
(13)
|
88
|
2
|
2
|
243
|
9
|
11
|
||||||||||||||
Rhinocort
|
128
|
(21)
|
(19)
|
40
|
(31)
|
21
|
(28)
|
(21)
|
12
|
(20)
|
(20)
|
55
|
(8)
|
(5)
|
||||||||||||||
Others
|
133
|
(18)
|
(14)
|
7
|
17
|
69
|
(17)
|
(11)
|
16
|
(16)
|
(16)
|
41
|
(24)
|
(20)
|
||||||||||||||
Total Respiratory
|
3,188
|
(3)
|
-
|
954
|
8
|
1,173
|
(12)
|
(5)
|
410
|
(1)
|
-
|
651
|
(3)
|
2
|
||||||||||||||
Oncology:
|
||||||||||||||||||||||||||||
Zoladex
|
822
|
(7)
|
(4)
|
19
|
(39)
|
167
|
(16)
|
(12)
|
328
|
(8)
|
(9)
|
308
|
5
|
12
|
||||||||||||||
Arimidex
|
421
|
(29)
|
(27)
|
17
|
(54)
|
100
|
(53)
|
(50)
|
209
|
(7)
|
(8)
|
95
|
(17)
|
(12)
|
||||||||||||||
Iressa
|
451
|
11
|
13
|
-
|
(100)
|
105
|
13
|
23
|
158
|
10
|
8
|
188
|
13
|
14
|
||||||||||||||
Casodex
|
342
|
(16)
|
(15)
|
(3)
|
n/m
|
40
|
(37)
|
(32)
|
224
|
(15)
|
(16)
|
81
|
(4)
|
1
|
||||||||||||||
Faslodex
|
479
|
21
|
25
|
227
|
18
|
137
|
(4)
|
5
|
42
|
n/m
|
n/m
|
73
|
18
|
31
|
||||||||||||||
Others
|
98
|
15
|
16
|
19
|
138
|
12
|
33
|
44
|
46
|
-
|
(2)
|
21
|
(5)
|
-
|
||||||||||||||
Total Oncology
|
2,613
|
(6)
|
(3)
|
279
|
4
|
561
|
(22)
|
(16)
|
1,007
|
(3)
|
(4)
|
766
|
3
|
8
|
||||||||||||||
Neuroscience:
|
||||||||||||||||||||||||||||
Seroquel IR
|
1,200
|
(62)
|
(62)
|
709
|
(71)
|
197
|
(53)
|
(50)
|
162
|
(2)
|
(3)
|
132
|
(24)
|
(20)
|
||||||||||||||
Seroquel XR
|
1,127
|
3
|
7
|
598
|
6
|
343
|
(6)
|
2
|
70
|
6
|
8
|
116
|
18
|
30
|
||||||||||||||
Local Anaesthetics
|
400
|
(12)
|
(8)
|
-
|
(100)
|
152
|
(18)
|
(11)
|
151
|
-
|
-
|
97
|
(10)
|
(5)
|
||||||||||||||
Zomig
|
143
|
(54)
|
(52)
|
10
|
(91)
|
84
|
(36)
|
(31)
|