AstraZeneca Swings to $477 Million Net Profit in 2Q

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.

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.

Write to Denise Roland at

(END) Dow Jones Newswires

July 27, 2017 02:38 ET (06:38 GMT)