AstraZeneca shares fall despite in line full-year earnings
AstraZeneca shares slipped over one per cent after warning many of its patents will run out during 2017.
The figures
Fourth quarter revenues were down 13 per cent at $5.6bn with full year revenues lower by seven per cent at $23.0bn.
Core operating profit was up by 30 per cent in the quarter at $2.0bn, but down over the full year by three per cent at $6.7bn.
Read more: AstraZeneca's annual results are likely to disappoint, analysts say
Earnings per share were $4.31 for the full year with the firm declaring full-year dividends of $2.80 per share.
Why it's interesting
Although today's results were broadly in line with expectations, the drugmaker is under increasing pressure in its core business as cheaper versions of drugs.
Unfortunately Nicholas Hyett an analyst at Hargreaves Lansdown was less than excited by the figures.
“Rarely are full year results as unimportant to investors as AstraZeneca’s are today," he said.
"Earnings and revenues continue to decline in 2016, a trend Astra expects to continue into next year, with low quality revenues making a bigger contribution this year than last."
Chief executive Pascal Soriot said although the results were in line with expectations they "reflected the ongoing transition of our company".
Read more: AstraZeneca lands initial $550m from sale of antibiotics business to Pfizer
Dr Tara Raveendran, an analyst at Shore Capital Markets said the problems Astrazeneca is facing won't be going away soon. She said: "We see continued pressure on Astra’s near-term earnings – with pricing headwinds and competitive.
Near-term performance is heavily reliant on delivery of the pipeline.
What the company said
Soriot added:
"Our underlying business is growing as a new AstraZeneca emerges, driven by competitive franchises and Emerging Markets."
2017 has the potential to be a turning point for our company as we near the end of our patent-expiry period and bring new medicines to patients across the globe.
Read more: Astrazeneca profits slide after increased competition
"This year we have the opportunity to launch several lifechanging medicines for cancer, respiratory and metabolic diseases.
"It is an exciting time as we rapidly approach the inflection point for our anticipated return to long-term growth, built on the solid foundations of a science-led pipeline."