AstraZeneca 3rd-qtr fails to meet expectations

As expected, says Anglo-Swedish drug major AstraZeneca (LSE: AZN), third quarter 2013 revenue declined due to the ongoing impact from products with recent losses of patent exclusivity. AstraZeneca shares shed 2.6% after third-quarter results undershot analysts' forecasts, and were down 1.9% at £32.67 at 11am GMT.

The 4% decline in revenue on a constant currency basis, combined with continued investment in our growth platforms and scientific leadership resulted in a greater decline in core earnings per share, the company noted

Revenue in the third quarter was $6.25 billion, down 4% at constant exchange rates (CER), and below consensus forecasts of analyst polled by Bloomberg of $6.38 billion. Core operating profit in the third quarter was down 29% at CER to $2.03 billion. The $250 million gain within core other income from the sale of OTC rights for Nexium (esomeprazole) in the third quarter last year accounted for 9 percentage points of the decline in the quarter. The balance of the decline was largely driven by lower revenue combined with an increase in core operating costs.