AstraZeneca 4th-qtr profits plunge 26% on generic woes

Increasing generic competition took its toll on Anglo-Swedish drug major AstraZeneca (LSE: AZN), which this morning reported a fall of 26% (at constant exchange rates) to $1.98 billion in profit (excluding restructuring costs and certain other items), for the fourth quarter of 2013, resulting in earnings per share of $1.23, but beating significantly the $1.18 average estimate of 13 analysts compiled by Bloomberg.

Revenue for the quarter dipped 4% (CER) to $6.84 billion, just ahead of the $6.82 billion average estimate of 15 analysts surveyed by Bloomberg. AstraZeneca’s shares were down 1.3% to £38.27 shortly after trading commenced this morning.

Revenue for full-year 2013 was $25.71 billion, down 6% (CER). Financial performance is in line with expectations and reflects the continuing loss of exclusivity on several brands, which offset revenue growth delivered by the key growth platforms, the company stated. Core operating profit for the year was down 22% at CER to $8.39 billion. Core earnings EPS for the full year was down 23% to $5.05.