By Razak Musah Baba
LONDON--AstraZeneca PLC (AZN.LN) Friday reaffirmed its 2015
earnings guidance and said it has revised its financial reporting
structure to include an additional revenue stream.
The pharmaceutical giant usually reports revenue from product
sales only, with "externalization revenue" reported as operating
income, it said. From January, externalization revenue, alongside
product sales, will contribute to total revenue.
"Externalization revenue includes development,
commercialization, partnership and out-license revenue, such as
royalties and milestone receipts, together with income from
services or repeatable licenses," the company said.
To reflect the change, AstraZeneca said total revenue for 2015
is expected to decline by a mid-single-digit percentage at constant
exchange rates, consistent with its previous guidance.
It added that its core earnings per share are still expected to
increase by a low single-digit percentage at constant exchange
rates.
The company also reaffirmed that based on current exchange
rates, total revenue is expected to decline by a low double-digit
percentage.
Write to Razak Musah Baba at razak.baba@wsj.com
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