AstraZeneca warns profits will be hurt as Crestor patent expires

4 February 2016

Shares in Anglo-Swedish drug major AstraZeneca (LSE: AZN) dropped nearly 4% in morning trade on the London Stock Exchange as the company warned full year 2016 revenue and earnings will take a hit on the back of generic competition for its cholesterol drug Crestor (rosuvastatin).

Chief executive Pascal Soriot said: “As we face the transitional period of patent expiry for Crestor in the US, we’re confident that our strong execution on strategy, combined with the benefits of focused investments and new launches, keeps us on track to return to sustainable growth in line with our targets.”

The company said it sees low-to-mid single digit decline in revenue and earnings for 2016. In addition, the currency headwinds are expected to add to the impact by 3%.

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