AstraZeneca saw revenue fall by around $3bn in 2011 after it faced global pricing restrictions from governments and generic competition.
Revenue was down 2% in constant exchange rates (CER) to $33.5bn after sales in the US fell by 2% and in Western Europe by 11%.
Despite the fall in revenue, David Brennan, AZ CEO, says the company’s “disciplined execution” of its strategy “delivered good performance” last year.
The company now expects to see reduced revenue in 2012 after the anticipated loss of exclusivity for Seroquel IR and Atacand in global markets, as well as for Crestor in Canada.
Sales in the US were down from $13.7bn in 2010 to $13.4bn last year after US healthcare reforms lowered income. This was despite growth in Crestor (+16%), the Seroquel franchise (+10%), Symbicort (17%) and Onglyza in the country.
In Western Europe, nearly a billion dollars was lost due to generic competition on Nexium, Armidex and Merrem. But losses were compensated by growth by Seroquel XR, Iressa, Faslodex, Crestor and Onglyza.
Emerging markets did show promise for the company as growth increased by 10% both in Q4 and for the full year. This was driven by mid-to-high teen growth in China, Russia and the Middle East/North Africa region. But generic erosion on Crestor and Seroquel IR in Brazil did see revenue fall in the country.
Sales of AZ’s gastrointestinal medicines were down 11% to $5.5bn with revenue also down on its oncology products by 12% to $3.7bn. But cardiovascular treatments, led by $6.6bn sales of Crestor, and its neuroscience drugs, helped by $5.8bn sales of the Seroquel brand, both recorded growth of 5% last year.
“While the further expected losses of market exclusivity make for a challenging 2012 outlook, we remain committed to a long-term, focused, R&D based strategy, and today we have announced further steps to drive productivity in all areas to improve returns on our investment in innovation,” said David Brennan.
In conjunction with its 2011 results, AstraZeneca also revealed new restructuring plans to its sales, general and administrative, research and development and operations divisions which will see 7,300 positions removed from its workforce by 2014. The move, which is hoped will generate annual savings of $1.6bn, is expected to cost the company an outlay of $2.1bn. Read the full job cuts story here.