Performance of AstraZeneca’s Oncology Segment in 2Q17 – Market Realist

Posted: September 2, 2017 at 2:40 am

What Drives AstraZenecas Valuation after Its 2Q17 Earnings? PART 7 OF 8

The Oncology segment from AstraZeneca (AZN) is one of the companys key focus areas. AstraZenecas Oncology segment has reported revenue growth in the last few years. For 2Q17, the Oncology segment reported revenues of $993 million, reflecting 19% growth at constant exchange rates compared to 2Q16.

The chart above shows revenues for AstraZenecas oncology products over the last few quarters. This growth was driven by Tagrisso, Lynparzy, Iressa, and Imfinzi, as well as legacy products such as Faslodex. This growth was partially offset by Zoladex, Casodex, and Arimidex.

Tagrisso is one of the new drugs from AstraZenecas oncology portfolio. The drug reported growth of more than 100% in revenues to $232 million in 2Q17, driven by 55% growth in its US sales to $90 million, as well as strong performance in other markets.

Lynparza, a drug for treating ovarian cancer, reported 11% growth in revenues at constant exchange rates to $59 million in 2Q17. The growth was driven by strong performance in the European markets, which was partially offset by lower sales in the US markets.

Faslodex is an oncology drug for the treatment of post-menopausal women with advanced or metastatic breast cancer. The drug reported 18% revenue growth at constant exchange rates to $248 million in 2Q17.

This growth was driven by strong performance in the US markets, European markets, and established rest of the world markets, partially offset by lower sales in the emerging markets.

Zoladex is an oncology drug used for the treatment of prostate cancer in men, as well as breast cancer or endometriosis in women. Zoladex reported revenues of $178 million in 2Q17, a decline of 12% at constant exchange rates. These revenues declined due to weak performance across all markets.

For diversified industry exposure, investors can consider the BLDRS Developed Markets 100 ADR ETF (ADRD), which holds 1.9% of its total assets in AstraZeneca (AZN). ADRD also holds 2.1% in Novo Nordisk (NVO), 2.8% in Sanofi (SNY), and 5.5% in Novartis AG (NVS).

Link:
Performance of AstraZeneca’s Oncology Segment in 2Q17 – Market Realist

Related Post