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How AstraZeneca’s Business Segments Performed in 3Q17

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AstraZeneca’s business segments

AstraZeneca (AZN) classifies its products into four business segments:

  • oncology products
  • respiratory products
  • cardiovascular and metabolic diseases (or CVMD) products
  • other products (includes infection, neuroscience, and gastrointestinal products)

The above chart compares the segment-wise revenues for AstraZeneca over the last few quarters.

Oncology segment

The oncology segment reported revenues of $1.0 billion during 3Q17, 19% growth in operating revenues as compared to 3Q16. The increase in revenues was driven by the increased sales of Lynparza, Iressa, and Tagrisso, and also the legacy product Faslodex. However, the growth during 3Q17 was partially offset by lower sales of some of the products including Arimidex, Casodex, and Zoladex.

Respiratory segment

The respiratory segment reported revenues of $1.1 billion during 3Q17, a 2% decline in operating revenues as compared to 3Q16. The decrease in revenues was due to lower sales of key products like Symbicort, Tudorza/Eklira, and some legacy products. However, the decline in 3Q17 was partially offset by increased sales of Bevespi, Daliresp, Duaklir, and Pulmicort.

CVMD segment  

The CVMD segment reported revenues of $1.8 billion during 3Q17, a 4% decline in operating revenues as compared to 3Q16. The decrease in revenues was due to lower sales of Bydureon, Byetta, Onglyza, Symlin, and legacy products including Crestor, Seloken/Toprol-XL, and other legacy products. However, the decline during 3Q17 was substantially offset by strong sales of Atacand, Brilinta, and Farxiga.

Other products  

The other products segment reported revenues of $991 million during 3Q17, a 17% decline in operating revenues as compared to 3Q16. The decrease in revenues was due to the lower sales of FluMist, Losec, Nexium, Seroquel XR, and other products. However, the decline during 3Q17 was partially offset by the increase in sales of Movantik and Synagis.

The VanEck Vectors Pharmaceutical ETF (PPH) holds 5.1% of its total investments in AstraZeneca (AZN), 5.3% in Mylan NV (MYL), 4.9% in Bristol-Myers Squibb (BMY), and 5.1% in Teva Pharmaceuticals (TEVA).

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