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How Is AstraZeneca Faring in Chinese Markets?

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Dec. 17 2018, Updated 10:30 a.m. ET

China market trends

In the first nine months of 2018, AstraZeneca (AZN) reported revenues worth $2.85 billion from China, which is a YoY rise of 33% on an actual basis and 27% on a CER (constant exchange rate) basis. China accounted for around 56% of the company’s total emerging markets sales and 19% of the total revenues earned by the company in the first nine months of 2018.

According to the company’s third-quarter earnings results announcement, the company recently launched products such as Seloken, Pulmicort, Symbicort, Crestor, and Zoladex, which accounted for almost 11% of the company’s sales in China in the first nine months of 2018, higher than the 7% share in the first nine months of 2017. In the third quarter, the company reported revenues worth $954 million from China, which is a YoY rise of 32% on actual and a CER basis. China accounted for around 18% of the total revenues earned by the company in the third quarter.

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Growth drivers

As per the company’s third-quarter earnings results announcement, Brilinta Iressa, Forxiga, Pulmicort, Crestor, and Symbicort, were added to China’s 2018 essential drug list (or EDL), which is published by the State Administration of Traditional Chinese Medicines and the Chinese National Health Commission on October 25, 2018. This revision of the EDL is further expected to boost AstraZeneca’s revenue growth trajectory in the Chinese market.

In the first nine months of 2018, AstraZeneca earned $646 million worth of revenues from oncology product sales in the Chinese market, which is a YoY rise of 55% on an actual basis and 48% on a CER basis. As per the company’s third-quarter earnings results announcement, this performance was mainly driven by robust uptake of drugs such as Tagrisso, Iressa, and Zoladex.

In the first nine months of 2018, AstraZeneca earned $991 million worth of revenues from new cardiac, renal, and metabolism (or CVRM) product sales in the Chinese market, which is a YoY rise of 31% on an actual basis and 25% on a CER basis. As per the company’s third-quarter earnings results announcement, Brilinta and Farxiga accounted for almost 15% of AstraZeneca’s total CVRM product sales in the Chinese market.

In the first nine months of 2018, AstraZeneca earned $1.15 billion worth of revenues from respiratory product sales in the Chinese market, which is a YoY rise of 19% on an actual basis and 15% on a CER basis. As per the company’s third-quarter earnings results announcement, AstraZeneca has invested in an infrastructure of 15,000 nebulization centers in China, which in turn has helped drive demand for Pulmicort.

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