The loss of patent protection is starting to show in AstraZeneca’s (LSE: AZN, OMXS: AZN, NYSE: AZN) results. The Anglo-Swedish pharmaceutical company posted a revenue of 7.35 billion $, down 11% for the year, in first quarter of 2012.Majority of the decline can be attributed to loss of revenue from Seroquel IR, Nexium and Arimidex. A negative impact from US healthcare reforms was also felt.
Core operating profit was just under 3 billion and reported number around 2.16 billion. Corresponding EPS numbers were 1.81 and 1.28 Dollars respectively. The company lowers core EPS target for 2012 to $5.85-$6.15 range This caused the stock to sell off and finish the day over 6% lower.
After taking much heat over the pipeline performance in recent years, CEO David Brennan is leaving the company. He has been with the company for a long time, previously as President & CEO of American subsidiary and has been the CEO since January 2006. It seems investors were running out of confidence, although the parties stop short of saying he was ousted. CFO Simon Lowth will act as interim CEO.
Chairman Louis Schweitzer, who was set to retire within months, will step down in advance which will allow the new Chairman, subject to shareholder approval, Leif Johansson to conduct the search for a CEO replacement.
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