Licensing Deals Help AstraZeneca Swing to Profit
February 04 2016 - 3:09AM
Dow Jones News
By Denise Roland
LONDON-- AstraZeneca PLC swung to a net profit in the fourth
quarter, as proceeds from licensing deals boosted revenue even as
product sales faltered in the face of cheaper competitors to the
company's aging blockbuster drugs.
London-based Astra posted a net profit of $808 million in the
quarter ending Dec. 31, compared with a loss of $321 million in the
year-earlier period. It reported revenue of $6.4 billion, a 5%
decrease from $6.7 billion a year ago; stripping out the effect of
the strong dollar, it increased 2%.
Core net profit, a measure which excludes certain one-time
items, rose 26% to $1.2 billion. Analysts expected revenue of $6.3
billion and core net profit of $1.2 billion.
The company's financial results were boosted by proceeds from a
series of licensing deals that involve AstraZeneca relinquishing
the rights to develop and commercialize certain drugs in its
pipeline in return for an upfront payment plus milestones.
In the fourth quarter, AstraZeneca received $192 million from
such deals. Chief Executive Pascal Soriot has said this so-called
externalization strategy allows Astra to focus on the diseases
where it has most expertise while creating value from those drugs
that sit outside these areas.
Write to Denise Roland at Denise.Roland@wsj.com
(END) Dow Jones Newswires
February 04, 2016 02:54 ET (07:54 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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