AstraZeneca revenue drops 21 percent in second quarter

Drugmaker AstraZeneca reported a 21 percent drop in the sales revenue in the second quarter of 2012, with new generic competition on key drugs such as Seroquel and Nexium being the major factor.

AstraZeneca is based in the United Kingdom but has big operations in Wilmington and Newark, Del.

Earnings per share were down 11 percent at $1.27, without factoring in currency rate changes.

“As we expected, the loss of exclusivity on some key brands and tough market conditions have resulted in a decline in revenue and earnings in the second quarter," interim chief executive officer Simon Lowth said in a statement. "Despite these challenges, we are on track to achieve our financial targets for the full year.

“The results in the first half of the year reflect the resilience of several of our brands and the benefits of disciplined cost management. Building on the collaboration with Amgen and the acquisition of Ardea, we continued to bolster our pipeline and portfolio through an exciting opportunity to expand our diabetes alliance with Bristol-Myers Squibb."

Bristol-Myers Squibb is buying Amylin for a total of about $7 billion, mainly for its collection of diabetes drugs. AstraZeneca will then pay $3.4 billion for an alliance with the Amylin subsidiary.