AstraZeneca beats profit forecasts, helped by external deals

A sign is seen at an AstraZeneca site in Macclesfield, central England May 19, 2014. REUTERS/Phil Noble

LONDON (Reuters) - AstraZeneca (AZN.L) revenue fell by a smaller-than-expected 7 percent in the second quarter, as income from spinning off assets offset generic competition to older medicines and a strong dollar.
The drugmaker increased its revenue forecast for the year and said it now expected a low single-digit percentage decline, against mid single-digit previously, while core earnings are still expected to increase at a low single-digit rate.
The decision to hold the earnings outlook despite a better revenue picture reflects accelerated investment in research and development, the company said.
Chief Executive Pascal Soriot, who fended off a $118 billion (75.6 billion pounds) takeover attempt by Pfizer (PFE.N) last year, is banking on a promising pipeline of new drugs - particularly in cancer - to revive the company's sales from 2017.
Quarterly sales totalled $6.3 billion, held back by cheap copycat versions of heartburn pill Nexium, while core earnings per share, which exclude certain items, fell 8 percent to $1.21.
Industry analysts had on average forecast sales of $6.0 billion and earnings of $1.05 cents a share, according to Thomson Reuters.

Revenue from "externalisation", or the sale of rights to certain drugs, amounted to $780 million in the six months to June 30, with the largest chunk coming from a $450 million deal with Celgene (CELG.O).

(Reporting by Ben Hirschler; editing by Dominic Evans)

Culled from Reuters