Once again, AstraZeneca's (AZN) full-year figures suffered from multiple patent expiries and a dearth of new products. And while market speculation of a turnaround fuelled a 23 per cent rise in the share price last year, the latest numbers suggest the rumours were premature at best.
Several high-profile medicines lost their patents during the year, including antipsychotic treatment Seroquel and stomach-acid drug Nexium. That resulted in a 7 per cent year-on-year decline in US revenues in the fourth quarter and a 2 per cent slump in sales elsewhere.
The inevitability of generic competition on expired patents makes chief executive Pascal Soriot's commitment to a new generation of respiratory and cancer treatments - currently in final-stage clinical trials - crucial. The company's buyout of Bristol-Myers Squibb from its shared diabetes division was also a positive step. The deal - worth $2.7bn (£1.7bn) - allowed AstraZeneca to acquire intellectual property for several new drugs, including Farxiga, which received regulatory approval at the start of 2014.
Management has guided the market towards an EPS decline "in the teens" for 2014. Deutsche Bank is currently forecasting an 8 per cent decline from 499¢ to 459¢, but reckons consensus estimates will fall in light of these results.
| ASTRAZENECA (AZN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 3,761p | MARKET VALUE: | £47bn | |
| TOUCH: | 3,760-3,761p | 12-MONTH HIGH: | 3,965p | LOW: 2,895p |
| DIVIDEND YIELD: | 4.7% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 1,843ȼ* | NET CASH: | $39m | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($bn) | Earnings per share (ȼ) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 32.8 | 10.8 | 519 | 141 |
| 2010 | 33.2 | 11.0 | 560 | 162 |
| 2011 | 33.6 | 12.4 | 733 | 176 |
| 2012 | 28.0 | 7.6 | 495 | 179 |
| 2013 | 25.7 | 3.3 | 204 | 176 |
| % change | -8 | -57 | -59 | -2 |
Ex-div: 19 Feb Payment: 24 Mar *Includes intangible assets of $26.0bn, or 2,066ȼ a share | ||||
