AstraZeneca: results fall short as Crestor tumbles

(CercleFinance.com) - AstraZeneca posted first-quarter revenue that was broadly in line, although sales of cholesterol pill Crestor were weaker than expected, which has hit the shares.


The Anglo-Swedish group said that total first-quarter revenue declined by 4% to 5.18 billion dollars, with Crestor sales down 67% in Europe, reflecting the entry of generic medicines.

Reported first-quarter operating profit fell by 24% to 696 million dollars, with core earnings of 0.48 dollar, significantly below the consensus of 0.57 dollar.

Analysts at Bryan Garnier see "good signs in oncology with new products offset by poor performance in diabetes and sharp decline in Crestor's sales in Europe and Japan."

The broker also notes that margins were lower than expected, due to a significant increase in SG&A expenses.

"After the recent rally in the share price, we see room for some profit-taking in the short-term," BG said.

Investors seemed to agree with the statement: AstraZeneca shares are currently down 2% at 5,241 pence in early-morning trading on Friday.

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