AstraZeneca revenue for the second quarter was $6,660 million, down 18 percent at constant exchange rates (CER). Revenue declined by 21 percent on an actual basis as a result of the negative impact of exchange rate movements. Loss of exclusivity on several key brands (including Seroquel IR from the end of March) accounted for 15 percentage points of the revenue decline; disposals of Astra Tech and Aptium accounted for 2.4 percentage points. Continued disruptions to our supply chain from the implementation of an enterprise resource planning IT system in our plant in Sweden negatively impacted revenue by around 2 percent. The underlying problems have now been largely resolved, and production is now responding to ongoing demand, including filling back orders and restoring normal inventories in the distribution channels. The Company estimates the impact for the full year will be around 1 percent of revenue.
US revenues were down 29 percent in the second quarter, with the loss of exclusivity for Seroquel IR accounting for 80 percent of the revenue decline. Growth for Symbicort, ONGLYZATM and Faslodex was offset by the disposals of Astra Tech and Aptium. The negative impact of US healthcare reform on second quarter revenue and costs was approximately $150 million.
Revenue in the Rest of World (ROW) was down 12 percent in the second quarter. Revenue in Western Europe was down 20 percent. In addition to the loss of exclusivity for Seroquel IR, generic competition also reduced revenues for Nexium, Atacand and Merrem in Western Europe. Revenue in Established ROW was down 12 percent, largely due to a 30 percent decline in Canada as a result of generic competition for Crestor and Atacand. Revenue in Emerging Markets was up 1 percent, reflecting loss of exclusivity for Seroquel IR and Crestor in Brazil and difficult market conditions in Mexico. Revenue growth was also impacted by the supply chain issues; adjusted for this impact, Emerging Market revenues would have increased by around 8 percent.
Simon Lowth, Interim Chief Executive Officer, commenting on the results, said: "As we expected, the loss of exclusivity on some key brands and tough market conditions have resulted in a decline in revenue and earnings in the second quarter. Despite these challenges, we are on track to achieve our financial targets for the full year.
"The results in the first half of the year reflect the resilience of several of our brands and the benefits of disciplined cost management. Building on the collaboration with Amgen and the acquisition of Ardea, we continued to bolster our pipeline and portfolio through an exciting opportunity to expand our diabetes alliance with Bristol-Myers Squibb.
"Our long-term priorities remain unchanged. We are driving the performance of brands that retain exclusivity, investing in markets with long-term potential, reshaping the cost base for sustainable competitiveness and continuing to drive for productivity on our investments in innovation, whether internally or externally sourced."
About AstraZeneca
AstraZeneca is a global, innovation-driven biopharmaceutical business with a primary focus on the discovery, development and commercialization of prescription medicines for gastrointestinal, cardiovascular, neuroscience, respiratory and inflammation, oncology and infectious disease. AstraZeneca operates in over 100 countries and its innovative medicines are used by millions of patients worldwide.