AstraZeneca ‘on track for 2006’

AstraZeneca has said it is “on track” to meet its financial targets for the year, after a “strong” second quarter.

Sales increased by ten per cent on the same period last year, led by a 51 per cent increase in Crestor sales and also a 25 per cent increase in Symbicort, which was approved by the FDA last week.

Nexium sales growth was eight per cent, although only five per cent in the US, where progress was affected by changes in managed care rebate accruals.

AstraZeneca highlighted the new indication for Arimidex recently approved in the UK, as well as Germany, Spain, Austria Italy and Portugal, saying that sales in the breast cancer drug had grown by almost a third.

The company’s product pipeline – still a concern for investors – was boosted by the addition of Cambridge Antibody Technology’s (CAT) products in development, including a hairy-cell leukaemia treatment in phase II trials. Having received a 95 per cent acceptance from CAT shareholders for a buy-out of the antibody research company, AstraZeneca is now in the process of compulsorily purchasing the remaining shares.

In addition, Abbott and AstraZeneca earlier announced a new collaboration to combine Crestor with Abbott’s next-generation TriCor, to produce a new, powerful anti-cholesterol hypertension drug.

AstraZeneca’s chief executive, David Brennan, remarked: “The strong second quarter earnings performance reflects our continued delivery of good sales growth and margin expansion.”

“Progress continues in our licensing and business development initiatives, as evidenced by the completed acquisition of CAT and the recently announced collaboration with Abbott in the US cholesterol market,” he added.

Some investors were not so impressed by AstraZeneca’s results, however, as shares declined yesterday.

Paul Diggle, pharmaceutical analyst for Nomura Code, told the Financial Times: “The increase in guidance was a bit weak and there was nothing really positive for investors to get their teeth into looking forward.”

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