AstraZeneca PLC (AZN.LN) swung to a net profit in the second quarter, thanks to lower spending on research and marketing, proceeds from several licensing deals, and a favorable year-earlier comparison, though revenue fell as sales of new drugs struggled to offset the decline of the company's old best-sellers.
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Cambridge, England-based AstraZeneca posted net profit of $477 million, compared with a $3 million net loss a year earlier, when the company took a restructuring charge related to job cuts. Revenue dropped 10% to $5.05 billion. Analysts had expected net profit of $450 million on revenue of $5.05 billion.
AstraZeneca's top line has been shrinking for several years as its historic best-sellers such as cholesterol-lowering pill Crestor lose patent protection, allowing cheap copycats to enter the market. Chief Executive Pascal Soriot has promised investors that 2017 will be the year when sales bottom out.
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(END) Dow Jones Newswires
July 27, 2017 02:38 ET (06:38 GMT)