As expected, the revenue decline in the third quarter reflected the ongoing effect from the loss of exclusivity on several brands. Continued disciplined management of operating expenses and proceeds from the sale of Nexium OTC rights mitigated the impact of the revenue decline on Core operating profit. Financial targets for full year unchanged.
- Revenue for the third quarter was $6,682 million, down 15 percent at constant exchange rates (CER).
- Loss of exclusivity on several brands and the disposals of Astra Tech and Aptium were the key drivers of the revenue decline.
- Strong growth for Symbicort, Faslodex, Iressa and ONGLYZATM.
- Emerging Markets revenue increased by 6 percent at CER. There was 23 percent revenue growth in China and in Russia in the third quarter. Continued weak performance in Mexico negatively impacted Emerging Markets revenue growth by more than 2 percentage points.
- Core EPS was $1.51 in the third quarter, an 8 percent decline at CER.
- Core EPS benefited from the lower number of shares outstanding resulting from net share repurchases.
- Reported EPS in the third quarter was $1.22, a 50 percent decline at CER.
- Reported EPS in the third quarter last year included $1.08 per share from the sale of Astra Tech.
- Expansion of the diabetes alliance with Bristol-Myers Squibb was completed on 8 August. Alliance sales teams began promotion of the Amylin diabetes product portfolio in the US in October.
- Year to date net share repurchases totalled $2.3 billion. Suspension of share repurchase programme announced on 1 October.
- Core EPS target range for the full year maintained at $6.00 to $6.30.
