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Exploring the Performance of AstraZeneca’s CVMD Segment in 1Q17

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Cardiovascular and Metabolic Disease segment

The Cardiovascular and Metabolic Disease (or CVMD) segment contributed ~33% of AstraZeneca’s (AZN) total revenue in 1Q17. 

The segment includes drugs Brilinta, Farxiga, Seloken, Bydureon, Onglyza, Byetta, Crestor, Atacand, and others.

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Brilinta

Brilinta, also classified as a new CVMD growth platform, reported a rise of 27% at constant exchange rates to $224 million in 1Q17. The drug reported a 24% rise in US sales to $87 million, a ~12% rise in European sales to $65 million, and a ~54% rise in emerging markets sales to $60 million at constant exchange rates.

Crestor

Crestor is a blockbuster drug from AstraZeneca. Crestor’s revenue fell 44% at constant exchange rates to $631 million in 1Q17. This fall was mainly due to a fall in global sales following competition from similar products. Crestor’s revenue fell 82% to $112 million in US markets and 4% to $195 million in European markets, and its emerging market sales rose 14% at constant exchange rates to $202 million in 1Q17.

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Farxiga

Farxiga reported revenue of $207 million in 1Q17, a 25% rise at constant exchange rates. This rise included a 2% rise in sales to $96 million in US markets, a 90% rise in sales to $42 million in emerging markets, and a 19% rise in sales to $50 million in European markets.

Onglyza

Onglyza revenue fell ~27% at constant exchange rates to $154 million in 1Q17, including a 35% fall in sales to $81 million in US markets, a 17% fall in sales to $30 million in emerging markets, and an 18% fall in sales to $27 million in European markets.

Other CVMD products

Other products in the CVMD segment include Bydureon, Byetta, and Seloken. Bydureon’s revenue rose 14% at constant exchange rates to $153 million in 1Q17. Byetta reported a fall of 24% at constant exchange rates to $46 million in the quarter.

To divest risk, investors can consider ETFs such as the iShares S&P Global Healthcare ETF (IXJ), which holds ~1.8% of its total assets in AstraZeneca. The ETF also holds 4.4% of its total assets in Merck & Co. (MRK), 2.5% in AbbVie (ABBV), and 4.9% in Pfizer (PFE).

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