AstraZeneca saw revenue and earnings decline as drugs lost patent protection and expenses rose from development efforts aimed at slowing down the decline.
Bloomberg reported the declines exceeded analysts’ estimates.
The company, which has administrative and manufacturing operations in Delaware noted that three new Phase III programs have started and an equal number of regulatory filings were accepted for review. AstraZeneca is on track to shed 1,200 jobs in Delaware as its cuts costs and focuses its research efforts at its Maryland-based Medimmune subsidiary.
The company did see gains an 8 percent gain in revenue for emerging markets, Japan, Brilinta, diabetes and respiratory treatment in the third quarter.
Revenue in the third quarter was $6,250 billion, down 4 percent. Core operating profit in the third quarter was down 29 percent to $2 billion.
US revenues were down 8 percent in the third quarter. Loss of exclusivity accounted for around half of the $213 million revenue decline, driven by declines in Crestor and Nexium and partially offset by growth for asthma drug Symbicort, diabetes drugs, FluMist and Brilinta, a heart drug. The negative impact of US health care reform on third quarter revenue and costs was approximately $199 million.
Pascal Soriot, CEO said: “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. 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.”