AstraZeneca Shares Slip on Disappointing Guidance - 2nd Update
February 04 2016 - 5:32AM
Dow Jones News
By Denise Roland
LONDON--AstraZeneca PLC warned earnings would fall this year as
it continues to plow investment into research and development and
expects a sharp drop in sales for one of its blockbuster drugs,
surprising investors and sending shares down more than 4% in early
trading here.
London-based Astra said it expected "core" earnings per
share--which strip out exceptional items--to decline in the low to
mid-single digits range in 2016, at constant currencies. That
surprised investors, who had expected the company would keep
earnings guidance flat.
Astra also said that it anticipates sales for Crestor, its
cholesterol drug, to fall this year as its patent expires.
Despite those headwinds, Astra said it would continue to fund
its costly research and development at 2015 levels throughout the
coming year. It said, however, it would "materially reduce" sales
and general administrative expenses to help rein in costs.
In early trading in London, Astra shares were down 185 pence, or
4.2%, at 4227 pence.
Write to Denise Roland at Denise.Roland@wsj.com
(END) Dow Jones Newswires
February 04, 2016 05:17 ET (10:17 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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