AstraZeneca raises forecast on strong third quarter

AstraZeneca (LSE: AZN), the Anglo-Swedish pharma major which defended itself against a £73.82 billion ($118 billion) hostile takeover bid from US giant Pfizer (NYSE: PFE), has presented a strong set of third-quarter 2014 financials and, for the second consecutive time this year, raised guidance.

Group revenues for the third quarter rose 5% to $6.54 billion, exceeding the industry analysts’ expectations of $6.41 billion, according to Thomson Reuters. Operating profit excluding certain items declined 13% to $1.77 billion, or $1.05 a share, beating the earnings per share $1.04 average analyst estimate compiled by Bloomberg. Nevertheless, AstraZeneca’s shares dipped 2.3% to £45.13 in morning trading.

Commenting on the results, Mick Cooper, analyst at Edison Investment Research, said: “The results are flattered slightly by the acquisition of BMS’s share of the diabetes alliance earlier in the year. That said, the increased investment in sales and marketing appears to be paying off with good growth across its cardiovascular (including Brilinta) and respiratory product portfolios.”