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How AstraZeneca’s Other Products Segment Performed in 1Q17

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Other Products

AstraZeneca’s (AZN) Other Products segment includes products related to infections treatment, neuroscience, and gastrointestinal drugs. Some of the key drugs in this segment include Nexium, Synagis, Seroquel XR, Movantik, and Losec.

The segment’s revenue fell 12% at constant exchange rates to $998 million in 1Q17. Let’s take a look at some of its key products and their performances.

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Nexium

Nexium, a gastrointestinal medicine for the treatment of acid-related disorders, reported a 1% rise in revenue at constant exchange rates in 1Q17. The drug reported revenue of $461 million following strong demand in US and European markets, offset by lower sales in emerging markets and the rest of the world. Its revenue is expected to fall in the coming quarters due to its exposure to generic competition in various markets.

Synagis

Synagis is used for the prevention of lung infections and infections related to breathing tubes in infants and children. Synagis’s revenue fell 6% at constant exchange rates to $230 million in 1Q17 due to lower sales in both US and the European markets.

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Seroquel XR

Seroquel XR, a neuroscience medicine for the treatment of schizophrenia, reported a revenue fall of 67% at constant exchange rates to $67 million in 1Q17. This revenue fall was driven by lower sales in US, European, and emerging markets, partially offset by growth in the rest of the world.

Movantik

Movantik, a drug used for the treatment of opioid-induced constipation, reported a rise of 76% at constant exchange rates to $30 million in 1Q17 revenue. This strong performance was driven by increased demand in US markets.

To divest risk, investors can consider ETFs such as the Vanguard FTSE All-World ex-US ETF (VEU), which holds ~0.5% of its total assets in AstraZeneca. VEU also holds 1.2% of its total assets in Novartis (NVS), 0.6% in Sanofi (SNY), and 0.5% in Novo Nordisk (NVO).

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