AstraZeneca tries to buy time

Prior to the results, Astra acquired a potential anaemia treatment from biotech firm Fibrogen for $815m (£536m) to add its deals for respiratory specialist Pearl Therapeutics that could eventually total $1.16bn, and the $443m it spent on lipid therapy company Omthera. The acquisitions will immediately boost the number of products in Astra's late-stage pipeline and eventually reduce its reliance on heart drugs Brilinta and Crestor, if approved by regulators. However, only time will tell if the strategy is successful given the pressure on Astra's sales in the half that is not being relieved by traditionally faster revenue growth in emerging markets (EM). For example, the 10 per cent underlying rise in EM sales to $2.75bn was flattered by softer comparisons last time. As a consequence, management reiterated its forecast for a mid-to-high single digit revenue decline this year, with core EPS now falling by significantly more due to rising costs.

Broker Shore Capital expects EPS for 2013 of 544¢, falling to 522¢ in 2014 (2012: 687¢).