AstraZeneca 2012 results continue to suffer from generic competition

Anglo-Swedish drug major AstraZeneca (LSE: AZN) revealed this morning that, for full year 2012, revenues fell 15% (at constant exchange rates) to $27.97 billion, hit by loss of exclusivity on several brands and the disposals of Astra Tech and Aptium which were the key drivers of the revenue decline.

Core earnings per share were $6.41 for the full year, a 9% decline at CER. Core EPS in 2012 benefited by $470 million ($0.37) from two separate tax related matters during the year. Reported EPS for the full year was down 29% at CER to $4.99. The decline reflects the $1.08 per share benefit in 2011 from the sale of Astra Tech and higher restructuring costs in 2012.

Revenue in the fourth quarter was down 15%; Core EPS was up 1% as a result of lower operating costs (including significantly lower intangible impairment costs in R&D) and a favorable $230 million adjustment to deferred tax balances following substantive enactment of a reduction in the Swedish corporation tax rate. Profit excluding some items fell 8% to $1.94 billion, or $1.56 a share, in the quarter, compared with $2.1 billion, or $1.61, a year earlier, the company said. Earnings beat the average analyst estimate of $1.33 a share compiled by Bloomberg.