Patent expiries cost AstraZeneca dear

THE EXPIRY of patents on three of its former bestselling drugs held back sales growth at AstraZeneca last year, although chief executive Sir Tom McKillop said the pharmaceuticals giant is set for strong growth in the years ahead.

US patents expired on its key Prilosec ulcer treatment, its Zestril heart drug and breast cancer treatment Nolvadex, together costing the group $2.6bn (£1.43bn) in lost sales. That left turnover for 2003 unchanged at constant exchange rates, at $18.85bn, while pre-tax profits declined by 9% to $4.2bn.

Sales of what AstraZeneca calls 'key growth' and newly-launched products jumped 45% to $8.2bn and now account for 44% of total group sales. Crestor, the group's anti-cholesterol drug, produced sales of $129m for the full year, including $62m in the US, although analysts had hoped the figure would be higher, with some forecasts up to $200m.

Overall, the results were in line with expectations, although the shares fell 45p to 2645p.

But McKillop is promising a return to growth. 'Achievements in 2003 when sales of key growth and launch products increased by 45% to $8.2bn propel AstraZeneca into an era of strong sales and profit growth, with a financial performance likely to rank amongst the best of our peer group,' he said.