AstraZeneca’s (AZN) net finance expense decreased from $420.0 million in the second quarter of 2017 to $332.0 million in the second quarter. AstraZeneca’s income tax expense, on the other hand, increased from $46.0 million in the second quarter of 2017 to $93.0 million in the second quarter. The tax rate incurred by the company increased from 9.0% in the second quarter of 2017 to 23.0% in the second quarter.
AstraZeneca’s net earnings decreased from $446.0 million in the second quarter of 2017 to $319.0 million in the second quarter. This translated into EPS of $0.27 in the second quarter, compared with EPS of $0.38 in the second quarter of 2017.
Oncology product performance
AstraZeneca’s products cater to the therapeutic areas of oncology, cardiovascular, renal and metabolic (or CVRM), respiratory, and other.
Its total oncology sales surged by 40.0% YoY (year-over-year) to $1.43 billion in the second quarter. Under oncology, the company’s new medicines include Tagrisso, Iressa, Lynparza, Imfinzi, and Calquence. Its legacy products include Faslodex, Zoladex, Arimidex, and Casodex.
Tagrisso sales surged by 77.0% to $422.0 million in the second quarter. Sales of Iressa, Lynparza, and Imfinzi stood at $143.0 million, $150.0 million, and $122.0 million, respectively, during the second quarter.
Among its legacy oncology products, Faslodex’s sales decreased 3.0% to $247.0 million in the second quarter, and Casodex’s sales fell 9.0% to $104.0 million in the second quarter. Zoladex’s sales grew 4.0% to $192.0 million, and Arimidex’s sales grew 2.0% to $57.0 million during the second quarter.
The contribution of total oncology sales to AstraZeneca’s revenues has risen from 19.0% in the first half of 2017 to 27.0% in the first half. Lynparza has been approved in more than 50 countries for ovarian cancer. The drug has seen healthy growth across geographies and particularly in the United States, reflecting growth in ovarian cancer and breast cancer indications.
We’ll analyze the performance of AstraZeneca’s CVRM and respiratory products in the next part.