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11:35 am, July 31, 2008
Astrazeneca posts $4.42bn profit for first half

By Claire Shoesmith

Astrazeneca, the international drug giant that employs about 7,500 people in the North West, reported a 4 per cent increase in first-half pre-tax profit as lower restructuring costs were partially offset by outgoings associated with the acquisition of MedImmune in the US and an impairment charge relating to one of its drugs, Ethyol. It also raised its full-year forecast.

Reported pre-tax profit was $4.42bn, up from $4.26bn, while sales increased 10 per cent to $15.63bn. For the second quarter alone, reported pre-tax profit was $2.28bn, up from $1.99bn, a 14 per cent gain, while sales climbed 9 per cent to $7.96bn.

Chief executive David Brennan said: “During the first half of 2008 Astrazeneca has made good progress on three fronts: performance, pipeline and patents. The business is on track to achieve our increased financial target for the year and we continue to strengthen the pipeline.”

Astrazeneca said that increased demand for Crestor, aimed at fighting cholesterol and its schizophrenia drug, Seroquel, had offset slowing revenue from its top seller, Nexium, for acid reflux, which is suffering price competition from cheaper rivals.

For the full year, Astrazeneca said it now expected core earning per share of between $4.60 and $4.90, up from between $4.45 and $4.75 as expected previously.

The shares climbed 2.6 per cent to 2,452.

Comments? cshoesmith@crain.com

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