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How AstraZeneca’s Revenues Trended in 4Q17

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AstraZeneca’s revenues

AstraZeneca (AZN) reported 2% growth in operating revenues to ~$5.8 billion during 4Q17 as compared to revenues of ~$5.6 billion during 4Q16. AstraZeneca’s 4Q17 revenues include a 2% increase in operating revenues, and a 1% favorable impact of foreign exchange, resulting in overall growth of ~3% in reported revenues during 4Q17.

The above graph compares AstraZeneca’s quarterly revenues since 1Q16.

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Revenue trends

AstraZeneca reported 3% growth in product sales at constant exchange rates to $5.5 billion, partially offset by a 12% decline in externalization revenues to $290 million during 4Q17. Foreign exchange had a favorable impact on revenues during 4Q17. The overall revenues rose 3% to $5,777 million during 4Q17 as compared to $5,585 million during 4Q16.

Growth platforms

AstraZeneca has classified some products and sales from some regions as growth platforms. Growth platforms include the sales of new oncology products, respiratory products, and new cardiovascular and metabolic diseases (or CVMD) products and sales from Japanese markets and Emerging markets.

For 4Q17, the growth platforms reported 12% operational growth to ~$4.2 billion as compared to 4Q16. The growth platforms contributed ~72.3% of the total revenues during 4Q17 and ~76.2% of the product sales during 4Q17.

Product wise, the new CVMD products reported a 21% growth in operating revenues to $1.0 billion during 4Q17, as compared to 4Q16 revenues. The respiratory products reported 8% growth in operating revenues to $1.3 billion during 4Q17 as compared to 4Q16 revenues. The new oncology products reported a 100% increase in operating revenues to $437 million during 4Q17 as compared to 4Q16.

Region-wise, the Japanese markets reported 2% growth in operating revenues to $563 million during 4Q17 as compared to 4Q16. The emerging markets reported 9% growth in operating revenues to $1.6 billion during 4Q17 as compared to 4Q16.

The Vanguard FTSE Europe ETF (VGK) holds 11.2% of its total investments in healthcare companies. VGK holds 0.8% in AstraZeneca (AZN), 1.8% in Novartis (NVS), 0.8% in GlaxoSmithKline (GSK), and 0.9% in Novo Nordisk (NVO).

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