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Performance of AstraZeneca’s CVMD Segment in 2Q17

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Cardiovascular and Metabolic Disease segment

The Cardiovascular and Metabolic Disease (or CVMD segment) contributed ~35.1% of total revenues for AstraZeneca (AZN) in 2Q17. The segment includes Brilinta, Farxiga, Onglyza, Bydureon, Byetta, Symlin, and legacy products such as Crestor, Seloken, and Atacand.

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Brilinta

Brilinta, also classified under new CVMD in the growth platforms, reported 29% growth at constant exchange rates to $272 million in its 2Q17 revenues. At constant exchange rates, the drug reported a 44% increase in its US sales to $128 million, an ~14% increase in the European market’s sales to $70 million, and an ~22% increase in the sales for emerging markets to $61 million during 2Q17.

Crestor

Crestor reported revenues of $560 million during 2Q17, a decline of 38% in revenues at constant exchange rates. This was mainly due to the decrease in its US and Europe markets, and it was partially offset by growth in emerging markets and established rest of the world markets.

At constant exchange rates, its revenues fell 89% to $41 million in the US markets, while the revenues fell 24% to $167 million in the European markets. Sales in emerging markets rose 13% at constant exchange rates to $187 million in 2Q17.

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Farxiga

Farxiga reported revenues of $250 million during 2Q17, a 29% growth in revenues at constant exchange rates. At constant exchange rates, its US sales reported a 4% fall to $110 million, representing 78% growth in sales to $58 million in the emerging markets, and a 23% increase in sales to $55 million in the European markets.

Onglyza

Onglyza’s revenues fell ~21% at constant exchange rates to $150 million during 2Q17. This includes an 11% decrease in sales to $78 million in its US markets, a 25% decrease in sales to $33 million in the emerging markets, and a 35% decrease in sales to $25 million in the European markets.

Other CVMD products

Other products in this segment include Bydureon, Byetta, and Seloken. Bydureon’s revenues fell 6% at constant exchange rates to $146 million during 2Q17. Byetta reported a decline of 43% at constant exchange rates to $43 million during 2Q17.

To divest company-specific risks, investors can consider the iShares Global Healthcare ETF (IXJ), which holds ~17% of its total assets in AstraZeneca Plc. (AZN). IXJ also holds 1.7% in Eli Lilly & Co. (LLY), 2.0% in Abbott Laboratories (ABT), and 2.2% in Gilead Sciences (GILD).

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