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AstraZeneca profits hit by tougher competition | AstraZeneca profits hit by tougher competition |
(about 1 hour later) | |
A mixture of legal costs, competition from cheaper rivals, and the lack of swine flu drug sales have hit AstraZeneca's third-quarter profits. | |
Underlying pre-tax profits, which Astra said better-reflect its performance, fell 10% to $3.1bn (£1.95bn). | Underlying pre-tax profits, which Astra said better-reflect its performance, fell 10% to $3.1bn (£1.95bn). |
The firm has set aside $473m against claims that its anti-psychotic drug Seroquel has harmful side-effects. | The firm has set aside $473m against claims that its anti-psychotic drug Seroquel has harmful side-effects. |
AstraZeneca, which faces competition from generic drugs in the US, had warned that trading would be tough. | AstraZeneca, which faces competition from generic drugs in the US, had warned that trading would be tough. |
Revenues in the three months to end-September fell almost 4% to $7.9bn. | Revenues in the three months to end-September fell almost 4% to $7.9bn. |
The results were just below analysts' consensus expectations, and the company's shares were down 2% in mid-morning trading. | The results were just below analysts' consensus expectations, and the company's shares were down 2% in mid-morning trading. |
However, the Anglo-Swedish company said that it now expected full-year profits to be at the upper end of previous estimates. | However, the Anglo-Swedish company said that it now expected full-year profits to be at the upper end of previous estimates. |
Revenues rose in all regions except the US, AstraZeneca's biggest market, where there was a 13% fall due to increased competition from generic drugs. | Revenues rose in all regions except the US, AstraZeneca's biggest market, where there was a 13% fall due to increased competition from generic drugs. |
A year ago, the company had also benefited from swine flu vaccine sales in the US. | |
David Brennan, chief executive, said: "As expected, the impact of generic competition on several products and the absence of pandemic flu vaccine revenue led to a challenging quarter in the US." | David Brennan, chief executive, said: "As expected, the impact of generic competition on several products and the absence of pandemic flu vaccine revenue led to a challenging quarter in the US." |
Litigation | Litigation |
The provision for Seroquel included $203m for agreements in principle to settle more than 18,250 claims, and $270m as a reserve to cover settlement of unresolved claims. | The provision for Seroquel included $203m for agreements in principle to settle more than 18,250 claims, and $270m as a reserve to cover settlement of unresolved claims. |
The company faces claims that Seroquel can cause diabetes in some patients. | The company faces claims that Seroquel can cause diabetes in some patients. |
Despite the litigation, sales of Seroquel were up 7% in the third quarter to $1.30bn. | Despite the litigation, sales of Seroquel were up 7% in the third quarter to $1.30bn. |
Sales of the cholesterol-fighting drug Crestor rose 20% to $1.37bn. | Sales of the cholesterol-fighting drug Crestor rose 20% to $1.37bn. |
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