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Chart in Focus: AstraZeneca’s Revenues in 2Q17

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Sep. 4 2017, Updated 8:07 a.m. ET

AstraZeneca’s 2Q17 revenues

AstraZeneca (AZN) reported a decrease of ~10% in its top line at ~$5.1 billion for 2Q17, compared to revenues of $5.6 billion for 2Q16. This includes an operational decline of ~8% and a 2% negative impact of foreign exchange. At constant exchange rates, the decline in revenues included an 8% decrease in product sales and an ~15% decline in externalization revenues.

The chart above shows AstraZeneca’s revenues since 3Q15. Because the company reports more than 60% of its sales from markets outside the US, the company is heavily exposed to currency risk.

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The growth platforms

AstraZeneca’s growth platforms contribute nearly 74% of its total revenues for 2Q17. The growth platforms reported revenues of ~$3.7 billion during 2Q17, a 1% growth in revenues at constant exchange rates compared to 2Q16.

The revenues from emerging markets in growth platforms rose 2% at constant exchange rates to ~$1.4 billion during 2Q17. The revenues from Japan rose 8% at constant exchange rates to $617 million during 2Q17.

The revenues from the company’s Cardiovascular and Metabolic Diseases franchise rose 3% at constant exchange rates to $872 million during 2Q17. The revenues from the Oncology franchise rose 99% at constant exchange rates to $301 million during 2Q17.

However, the Respiratory franchise reported a 9% decline in revenues at constant exchange rates to $1.1 billion during 2Q17.

For broad-based industry exposure, investors can consider the Vanguard FTSE Europe ETF (VGK), which holds 0.7% of its total assets in AstraZeneca Plc (AZN). VGK also holds 0.7% in Novo Nordisk (NVO), 0.9% in GlaxoSmithKline (GSK), and 1.0% in Sanofi (SNY).

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