AstraZeneca Swings to Profit

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 [e-mail]

(END) Dow Jones Newswires

February 04, 2016 03:15 ET (08:15 GMT)

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