AstraZeneca Upgrades Outlook Despite Slide in Profit

By Carlo Martuscelli

AstraZeneca PLC (AZN.LN) said Thursday that third-quarter net profit fell, while sales increased as it raised its guidance.

Profit in the period was $299 million, down from $431 million in the prior year. Revenue climbed 16% to $6.13 billion. Core earnings per share, a closely-watched company measure that strips out exceptional items, rose 40% to 99 cents, edging ahead of the 97 cents expected by analysts.

The drug maker said that its reported net profit was hit by increased legal provisions, while comparables were made more difficult by a positive $436 million legal settlement the year before.

Product sales in China, a market that has been a key focus for Chief Executive Pascal Soriot, grew by 40% at constant exchange rates.

Meanwhile, revenue from the pharmaceutical company's oncology portfolio, which has been key to returning the business to sales growth after years of declines, increased by 48% excluding currency effects. The drug that generated the most revenue in the category was Tagrisso, with total sales of $891 million in the quarter.

Astra upgraded its full-year outlook for the year. The company said it now expects to product sales to grow by a low to mid-teens percentage at constant exchange rates. Previously it guided for low double-digit percentage growth.

Write to at [e-mail]; @carlomartu

(END) Dow Jones Newswires

October 24, 2019 02:42 ET (06:42 GMT)

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