AZ aiming for strong growth

Even with a number of its products coming off patent, AstraZeneca's sales rose 6% to nearly US$19bn (£11bn) but higher research and development costs sent profits 4% lower to US$4.2bn(£2.3bn).

Full year sales of $18,849m and an operating profit of $4,111m, prompted AZ's ceo, Tom McKillop to comment: 'Achievments in 2003 when sales in key growth and launch products increased by 45% to $8.2bn, propel AstraZeneca into an era of strong sales and profit growth, with a financial performance lilely to rank among the best of our peer group.'

The fourth quarter sales performance was 8% down, at $4,875m, compared with the same period a year earlier, but exchange rate movements against the US dollar resulted in a reported sales decline of just 1% [$4,901m]. The sales were affected by the ongoing generic competition for Prilosec, Zestril, and Nolvadex, but also by wholesaler stocking in the range of $300m higher at the end of the third quarter 2003. AZ believes that wholesaler stocking has returned to normal levels, and hopes to mitigate this factor through a series of inventory management agreements in 2004. Highlights of 2003 included:

Sales of Nexium, AZ's stomach ulcer treatment, reached $3.3bn for the full year on the back of strong growth both in the US, up 62%, and in the rest of the world (60%). The company said the market share of total prescriptions in the US PPI market is now over 25%.

Crestor, the LDL-C lowering drug, added $129m in sales from its launch, including $62m in the US. By mid january, Crestor's share of the new prescription market had reached 4.6%

Sales of oncology products increased 8% despite generic erosion of Nolvadex in the US. Iressa sales reached $228m for the full year, with sales of just over $100m each in Japan and the US. In the US, more than 42,000 retail prescriptions have been dispensed for Iressa since launch in May 2003.

In December, Exanta, the company's thrombin inhibitor aimed at replacing Warfarin, in the prevention of venous thromboembolic events (VTE), received its first regulatory approval, in France. Also, there were regulatory admissions in Europe and the US for Exanta's use in prevention of stroke associated with atrial fibrillation.

Neuroscience product sales were up 12%, as Seroquel continued strong growth in the US, up 22% and in the rest of the world, up 45%. The FDA has also recently approved Seroquel's approval for use in the treatment of acute bipolar mania.

Jonathan Symonds, AZ's chief financial officer, said that given its range of products, AZ was: 'confident we can derive strong growth over the next several years, and achieve sustained top tier financial performance compared with our peers.'