AstraZeneca Q2 revenue increased 2% at constant currencyStaff writer ▼ | July 30, 2015
AstraZeneca reported an increase in second-quarter revenue, driven by income from licensing deals, though profit continued to fall as the company plowed heavy investment into new drugs it hopes will replace its old blockbusters.
AstraZeneca $6.31 billion in revenue
The strong dollar cut into the results, with revenue down 7% and core operating profit slumping 11% in reported terms. Analysts surveyed by The Wall Street Journal expected sales of $5.71 billion and core operating profit of $1.73 billion. Net profit slumped 12% to $697 million.
AstraZeneca has started including income from partnerships and licensing deals, what it calls "externalization revenue," in its top line as this is becoming an increasingly significant revenue stream for the company.
Stripping out the effect of the strong dollar, product sales fell 1% to $5.84 billion in the second quarter but externalization revenue increased 54% to $471 million.
The rise in externalization revenue was largely driven by a $450 million upfront payment from Celgene Corporation for the rights to develop one of Astra's immune-oncology medicines, MEDI4736, in certain blood cancers. ■