AstraZeneca 4Q Net Profit Boosted By Licensing Deals

By Denise Roland

LONDON--AstraZeneca PLC said net profit increased in the fourth quarter as a rise in proceeds from licensing deals offset sharply lower sales of the company's top-selling cholesterol pill, after several cheap generic versions launched earlier this year.

Cambridge, England-based Astra said net profit more than doubled to $1.8 billion in the three months to Dec. 31, from $808 million in the same period a year earlier. Analysts expected net income of $616 million. Revenue slipped 13% to $5.6 billion, from $6.4 billion a year ago, meeting analysts expectations.

The boost in net income was largely thanks to a rise in proceeds from a string of licensing deals struck by Astra to offload drugs that fall outside its core areas of focus, in order to raise funds for developing new medicines.

Astra notched $1.1 billion from these deals in the fourth quarter, compared with $471 million the same period a year earlier.

Write to Denise Roland at [e-mail]

(END) Dow Jones Newswires

February 02, 2017 02:42 ET (07:42 GMT)

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