AstraZeneca’s Oncology Segment: How Did It Perform in 2Q15?
AstraZeneca Posts Positive 2Q15 Earnings, Stock Rises
The oncology segment
AstraZeneca’s (AZN) oncology segment is another key focus area. The segment contributed ~11.6% in 2014 and ~12.1% in 2Q15. AstraZeneca acquired Definiens to strengthen its oncology portfolio. Key products for oncology are Zoladex and Faslodex.
Zoladex
Zoladex is a drug used for the treatment of prostate cancer in men and breast cancer or endometriosis in women. Total revenues for Zoladex improved 14% at the constant exchange rate in 2Q15, driven by a 41% increase in revenues at the constant exchange rate recorded from emerging markets. About 44% of total revenues for Zoladex are recorded from emerging markets.
Zoladex has competitors such as Enantone from Takeda Pharmaceutical Company (TYO) and Decapeptyl from Ipsen (IPN),
Faslodex
Faslodex is used for the treatment of breast cancer. Faslodex revenues improved 9% at the constant exchange rate in 2Q15, driven by non-US markets and partially offset by a decline in US markets. The US market contributes nearly 47% of total revenues for Faslodex.
Other products
Other oncology products include Iressa and Lynparza. Iressa is a drug used for the treatment of lung cancer. The compound AZD9291 is under regulatory submission for approval for the treatment of lung cancer.
Companies such as Celgene (CELG), Novartis (NVS), and Johnson & Johnson (JNJ) compete against AstraZeneca in the oncology field. The Health Care Select Sector SPDR ETF (XLV) and the Market Vectors Pharmaceutical ETF (PPH) are focused on the pharmaceuticals and healthcare segment. PPH holds 4.54% of its total investments in AstraZeneca.
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