AstraZeneca profits hit by patent expiry, second half seen easier

AstraZeneca remained confident of hitting its full year targets despite profits being knocked in the first quarter by falling sales of its cholesterol blockbuster Crestor after its patent expired.

This saw group sales decline to $5.4bn in the first three months of the year, down 12% on a reported basis or 10% at constant exchange rates, as emerging markets became the FTSE 100 group's largest region, representing 32% of sales.

The first-quarter outcome was better than the market expected and the impact of recent patent expiries is expected to recede in the second half of the year.

Core operating profits rose 5% to $1.7bn, or were down 2% at constant exchange rates.

Chief executive Pascal Soriot said there had been continued good progress on controlling costs, with research and development costs cut 2% and core R&D by 6%, and core sales and general admin overheads declined 14%.

"Our good start to the year supported our guidance for 2017," he said, noting that the new drug pipeline "continued to deliver" in what he expects will be a "pivotal year", particularly in oncology.

AstraZeneca received full regulatory marketing approval in the US and Europe for Tagrisso in lung cancer and launched the drug in record time in China.

Positive data was published for Lynparza in ovarian and breast cancer and Farxiga for type-2 diabetes.

"Importantly, we anticipate the significant progress of the pipeline to continue, including our immuno-oncology and targeted treatments," .

"We will also maintain our commitment to drive efficiency across the company to support our efforts to bring new medicines to patients."