AstraZeneca Shares Slip on Disappointing Guidance - 2nd Update

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 [e-mail]

(END) Dow Jones Newswires

February 04, 2016 05:17 ET (10:17 GMT)

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