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Inside AstraZeneca’s Oncology Segment Growth in 3Q15

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Oncology segment

AstraZeneca’s (AZN) Oncology segment is another key company focus area. The segment’s contribution rose to over 17% in 3Q16, and its key products for oncology include Tagrisso, Zoladex, Faslodex, and Iressa. To strengthen its Oncology portfolio, AstraZeneca acquired Definiens in November 2014.

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Tagrisso and Lynparza

Tagrisso, a new drug for the treatment of metastatic non-small-cell lung cancer, was approved during the fourth quarter of 2015. Tagrisso was launched in US markets in November 2015 and reported revenues of $133 million in 3Q16.

Lynparza is a drug used for the treatment of ovarian cancer. Lynparza was launched in US markets in December 2014 and in 15 countries including France and Germany by the end of 2015. Lynparza’s 3Q16 revenues were $58 million.

Iressa and Zoladex

Iressa is a drug used for the treatment of lung cancer. Iressa’s revenues fell 13% at constant exchange rates in 3Q16 due to lower sales in European markets and emerging markets.

Zoladex is a drug used for the treatment of prostate cancer in men and breast cancer (or endometriosis) in women. Zoladex’s 3Q16 revenues fell 5% at constant exchange rates after a 9% fall in sales in European markets.

Faslodex

Faslodex is used for the treatment of postmenopausal women with advanced or metastatic breast cancer, for patients who have been treated with endocrine therapy. Faslodex’s 3Q16 revenues rose 11% at constant exchange rates, following increased demand in the US as well as outside US markets. Nearly 50% of revenues from Faslodex are reported from outside US markets.

Faslodex competes with drugs like Femara from Novartis (NVS) and Xeloda from Genentech, a Roche company (RHHBY).

To divest risk, investors can consider ETFs like the First Trust Value Line Dividend ETF (FVD), which has ~0.5% of its total assets in AstraZeneca, 0.5% in Bristol-Myers Squibb (BMY), and 0.5% in Sanofi (SNY).

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