AstraZeneca warns of challenging market conditions

AstraZeneca has announced a fall in fourth quarter profits of 13% to $1.8 billion (£905 million).

The pharmaceutical giant warned tough competition from rival drugs companies as demand slowed for its big-selling indigestion medicine Nexium.

As with pharmaceuticals companies, AstraZeneca has suffered for many years from the affect of cheap copycat versions, known as generics. This year, generic manufacturers are planning to apply for the right to introduce cheap versions of Nexium and of Astra’s schizophrenia drug Seroquel.

David Brennan, chief executive, said we have made strong progress to reduce our cost base, improve efficiency and provide funds for our pipeline, stressing a restructuring programme and accelerated research and development activities since the purchase last year of US biotechnology company, MedImmune.

Mr Brennan concluded AstraZeneca has all the elements required to deliver a flow of biologics, including vaccines, to market.

AstraZeneca forecast earnings per share would be unchanged at $4.40-$4.70, compared with $4.38 last year.

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