Shock Growth Slowdown At Sweden's Astra

Swedish pharmaceutical company Astra has announced an unexpectedslowdown in growth in the first three months of 1997. The firm's pretax earnings grew only 1% to 3.4 billion Swedish kroner ($452.6 million), and earnings per share were 4.04 kroner, also advancing only 1%. Operating earnings improved 6% to 3.4 billion kroner. In reaction to the news, the firm's share price tumbled 22 kroner to 320.50 kroner in Stockholm.

Sales for the quarter were 10.1 billion kroner, up 9%, or when calculated at constant exchange rates, sales growth was 5%. Astra's turnover of its antiulcerant Losec (omeprazole) amounted to 4.8 billion kroner, up 8% at constant exchange rates. Total sales of the product worldwide were just over 7 billion kroner, an increase of 19.4%. The firm's asthma treatment Pulmicort (budesonide) experienced growth of 7% to 1.2 billion kroner.

The firm said that development of its sales in the quarter was affected by a certain amount of patient and wholesaler stockpiling prior to the end of 1996, especially in Sweden. This also impacted earnings, it added.