By Hester Plumridge
LONDON--Pharmaceutical company AstraZeneca PLC (AZN.LN) raised
its earnings guidance for the year Thursday, as it continues to
benefit from the delayed launch of a rival's copy of one of its
best-selling drugs, but its profits slid as it continues to invest
in marketing efforts and new drug development.
Sales rose 5% to $6.54 billion, helped by delays to the launch
of a cheap copy of AstraZeneca's heartburn pill Nexium by Indian
group Ranbaxy Laboratories, meaning doctors are still prescribing
AstraZeneca's product.
Net profit fell to $254 million from $1.25 billion in the same
quarter of the previous year. Core earnings a share were $1.05,
down from $1.22.
AstraZeneca said it now expects sales to grow in low single
digits for the full year, having previously expected no growth. The
company also raised its guidance for core earnings a share, which
strip out acquisitions and divestments, to fall by about 10% this
year, rather than the low double-digit decline it had been
expecting.
Investors will be focused on two further events this month. More
details on AstraZeneca's pipeline of new drugs should be
forthcoming at an investor day on Nov. 18.
In addition, a mandatory six-month cooling off period for Pfizer
Inc. (PFE) expires on Nov. 26, following AstraZeneca's rejection of
a $120 billion offer from the U.S. company in late May. Pfizer
hasn't ruled out making another takeover approach.
Write to Hester Plumridge at hester.plumridge@wsj.com
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