AstraZeneca Results, Commentary, Economist Intelligence Unit
AstraZeneca's results were as disappointing as expected given the effect of patent expiries on the company. The company has reached the edge of a steep patent cliff, with drugs accounting for a fifth of its US$33.6bn sales in 2011 set to lose US patent protection by 2015. Investors are waiting impatiently for a decisive strategy from new CEO Pascal Soriot, who in his previous job helped to oversee Roche's successful integration of US biotech Genentech. His predecessor, David Brennan, focused his efforts on R&D investment, but the company still has nothing very substantial in its late-stage pipeline. Mr Soriot is more likely to focus on in-licensing and partnerships. Since he cancelled the share buyback in early October, there have been rumours he is putting money aside for a major acquisition, though the CEO will only say that he is considering "several options"
