AstraZeneca Reports Fall in First-Quarter Profit

LONDON-- AstraZeneca PLC on Friday reported a fall in first-quarter revenue and profit as the company invests in new drugs while sales of its older blockbusters are eroded by cheaper rivals. But the drug maker tried to switch investor focus to its pipeline of new cancer drugs with two licensing deals to explore further uses of experimental treatments.

The U.K.-based company said core net profit fell to $1.37 million in the quarter ended March 31, 7% lower than a year earlier, while revenues dipped 6% to $6.06 billion. Stripping out the effect of the strong U.S. dollar, net profit fell 3%.

Stripping out revenues from the company's licensing deals, which until now haven't been included in the revenue figure, sales fell to $5.75 billion--a drop of 10% from a year earlier, or 3% at constant exchange rates.

Separately, the company reported two licensing deals involving its immuno-oncology program, which develops drugs that harness the body's own defenses to fight cancer.

It will pay French biotech Innate Pharma SA up to $1.28 billion to exclusively co-develop and commercialize a drug known as IP2201 as a combination therapy with its own drugs. It will also pay royalties on eventual sales.

Astra has also done a deal with Celgene Corporation, whereby Celgene will pay the U.K.-based drug maker $450 million to develop one of its immuno-oncology treatments in a range of blood cancers.

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