AstraZeneca reported an unexpected rise in third-quarter earnings today, helped by a weak dollar and wholesaler stockbuilding that allowed it to nudge up its earnings forecast for 2003.
Shares in the group jumped nearly 4 per cent as investors welcomed the upbeat message, which follows disappointment that larger rival GlaxoSmithKline had not raised its profit outlook when it unveiled results yesterday.
Earnings per share climbed 20 per cent to 47 US cents in the third quarter. Pre-tax profits rose 21 per cent to $1.12 billion on sales up 12 per cent at $4.80 billion.
The Anglo-Swedish group has been hit by multiple generic copies of its once top-selling ulcer pill Prilosec in the US, but sales of other relatively new drugs such as Nexium, Seroquel and Symbicort have offset the damage.
The quarter also benefited from wholesalers adding to their stocks of Nexium - a follow-up drug to Prilosec - ahead of an expected September price increase. Stocks of the drug at the end of the quarter were $100 million above normal levels.
The company said it now expected 2003 earnings to be at the top or just above the previously announced $1.65-$1.75 per share range.
The stock was up 3.8 per cent at 28.53 pounds by 11.10 a.m. making it the top gainer in the FTSE 100 index of leading shares.
