AstraZeneca PLC: First Quarter Results 2007

For full report, see attachment.

“First quarter sales up 9 percent and Earnings per Share up 14 percent. On track to achieve full year financial targets.”

Financial Highlights
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Group 1st Quarter 2007 $m 1st Quarter 2006 $m Actual % CER %
Sales

6,966

6,180

+13

 +9

Operating Profit

 2,170

1,976

+10

+10

Profit before Tax

2,267

 2,044

+11

+11

Earnings per Share

$1.02*

$0.90

+13

+14

Adjusted to exclude Toprol-XLTM in US**
Sales

6,635

5,826

+14

+10

Earnings per Share

 $0.89*

$0.79

+14

 +14

       

*Includes ($0.04) restructuring charge associated with the supply chain productivity initiative.
**This Non-GAAP presentation excludes US sales and earnings contribution from Toprol-XLTM from both current and prior year period.
All narrative in this section refers to growth rates at constant exchange rates (CER)

• Earnings per Share, before restructuring charges, were $1.06 ($0.93 adjusted to exclude Toprol-XL™).
• First quarter sales increased by 9 percent to $6,966 million and operating profit increased by 10 percent to $2,170 million. Excluding the $82 million charge to cost of sales associated with the previously announced supply chain productivity initiative, operating profit increased by 15 percent.
• Combined sales of five key growth products (Nexium™, Seroquel™, Crestor™, Arimidex™ and Symbicort™) increased by 17 percent to $3,614 million.
• Free cash flow of $1,907 million in the first quarter. Cash distributions to shareholders, including net share repurchases of $1,151 million, totalled $3,029 million in the quarter.
• The Company expects to launch Symbicort™ in the US around the middle of this year.
• On 25 March at the Scientific Sessions of the American College of Cardiology, data from the METEOR trial of Crestor™ was presented, demonstrating that Crestor™ treatment slowed progression of atherosclerosis in people with early signs of carotid artery disease and at low risk of coronary artery disease.
• As previously announced, the ARISE trial did not meet its primary endpoint. After completion of the final study analysis, and under the terms of the licensing and collaboration agreement, the Company has confirmed to AtheroGenics Inc. that it has decided to terminate the licensing and collaboration agreement. Charges totalling $83 million have been taken in conjunction with this decision.
• On 23 April, the Company announced it is to acquire MedImmune, Inc. for $58 per share in an all cash transaction with a total enterprise value of $15.2 billion.

LONDON, April 23, 2007-David Brennan, Chief Executive Officer, said: “We continue to deliver on our three strategic priorities: with a good sales and earnings performance in the first quarter, we are on track to achieve our full year targets; we continue our efforts to strengthen the pipeline - our number one priority; and the entire organisation is rising to the productivity challenge. This constitutes a good start to the year, building on sound foundations established over the last 3 years.”

London, 23 April 2007
Media Enquiries: Steve Brown/Edel McCaffrey (London) (020) 7304 5033/5034
Staffan Ternby (Södertälje) (8) 553 26107
Emily Denney (Wilmington) (302) 886 3451
Analyst/Investor Enquiries: Mina Blair (London)/Karl Hard (London) (020) 7304 5084/5322
Jonathan Hunt (London) (020) 7304 5087
Staffan Ternby (Södertälje) (8) 553 26107
Ed Seage/Jörgen Winroth (US) (302) 886 4065/(212) 579 0506  

Posted: April 2007


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