AstraZeneca posts strong results and names McKillop's successor
AstraZeneca (AZ) has posted strong second quarter and half year results and ceo sir Tom McKillop has named his successor as David Brennan, current executive vice-president North American operations.
AstraZeneca (AZ) has posted strong second quarter and half year results and ceo sir Tom McKillop has named his successor as David Brennan, current executive vice-president North American operations.
The company saw underlying costs decline this quarter while strong sales of its key drugs Crestor, Nexium and Seroquel boosted its top line. Sales grew by 15% to $11.87bn (£6.72bn) compared with $10.36bn last year. Pre-tax profits rose to US $3.24 bn (£1.85bn) in the six months to June, 52% up on last year ($2.13m).
If he can hold this performance to the end of the year, sir Tom will leave on a high note when Brennan takes over in January
From among the company's key products, the cholesterol drug Crestor saw sales soar 72% but it still faces challenges in the US. Sales of stomach ulcer treatment Nexium rose 22%, and those of Seroquel, its schizophrenia drug, rose 39%. The company said a new slow-release formulation of this drug will offer future benefits and there are plans to broaden its indications.
Cfo, Jonathan Symonds, countered critics that say AZ lacks drugs in the pipeline, saying: 'We still have a very big pipeline. We have 15 molecules in early development. We have a lot of exciting things going on. We're expecting to take over 20 things into development this year.'
The company currently has three compounds in Phase III trials: the cancer treatment Zactima (AZD6474); the anti-tumour agent (AZD 2171), and Galida, (tesaglitazar) for treating Type 2 diabetes and metabolic syndrome.
AZ also said Arimidex (anastrozole) had shown it is better than Tamoxifen on five-year results and it plans to market it as the drug of choice for women with hor-mone dependent breast cancer.
Not so successful is the P-CAB inhibitors, in particular AZD0865, known as the son of Nexium. Its performance has only equalled that of its forerunner, so the company will look at other mechanisms for controlling this disorder.
It said it hadn't given up on Exanta (ximelagatran), an oral treatment for preventing blood clots, and is hoping for a full review under new European laws. Son of Exanta (AZD0837) is in clinical development and the company will decide where the two compounds fit at end of the year.
AZ is also moving into biologicals of which it has two in development: a recombinant protein in the cardiovascular area and a monoclonal antibody in the CNS area.