Investopedia: A Foursome Of Pharma Earnings Suggests Business Is Still Tough

Medical progress is a tricky thing, especially since the pace of that progress follows no particular rule or trajectory. Pharmaceutical companies increasingly find that they must spend considerably more money on R&D only to develop drugs that are incrementally better than generics that have been available for two decades. Add to that fierce global competition, occasionally hostile regulator behavior and opportunistic generic drug developers laying in wait, and it is not altogether surprising to see a mixed bag as pharmaceutical companies report their fourth quarter results. 

AstraZeneca - Sharing the Wealth, But Taking Some Blows
AstraZeneca did a little better than expected, but sales were still down about 4% in the fourth quarter. The company's largest drugs had mixed performance, as Crestor sales jumped 26% and Nexium sales fell 2%. Investors should note, though, that just four drugs accounted for 57% of revenue and AstaZeneca is one of the most "concentrated" drug companies out there. (For more, see UK's Global Footprint Stocks.)

AstraZeneca has had some rough going of late including a complete response letter for Brillinta and the decision to discontinue a range of drugs including olaparib, Certriad, and Iressa. On a more positive note, the company is moving ahead with an exciting first-of-its-kind oral diabetes drug, as well as an oral rheumatoid arthritis drug that could threaten large franchises of Abbott Labs (NYSE:ABT) and Roche (Nasdaq:RHHBY). 

On a happier note, AstraZeneca is not being miserly with its wealth - the company doubled its buyback to $4 billion and pays a respectable dividend. Investors may question, though, whether that money would be better spent in the lab, as pipeline disappointments have taken more than $1 billion out of the mid-term revenue outlook.
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