Investors who applauded AstraZeneca’s (AZN) snub of Pfizer’s (US: PFE) takeover bid earlier this year will be keen to see how the first half of the 2014 financial year is shaping up. The headline figures don’t paint the prettiest picture, but shareholders knew this was coming. In January, chief executive Pascal Soriot said Astra would not deliver meaningful growth until 2017.
On closer inspection, however, the story is not all doom and gloom. Second-quarter sales of cardiovascular, respiratory and diabetes products were strong. Diabetes in particular drove an 8 per cent increase in US revenues, which helped boost EPS 13 per cent. Management consequently upgraded full-year guidance: Astra's sales are now expected to be in line with 2013 levels at constant currencies, and the EPS decline less severe than previously expected.