While generic competition led to lower Q2 revenues, AstraZeneca’s (LSE: AZN, OMX: AZN) interim report wasn’t all bad. As evidence by the recent deal with Bristol Myers Squibb to try to acquire Amylin Pharmaceuticals, the company is seeking innovative ways to mitigate the effect of past R&D failures. With a company and wide network already in place, it can afford to slightly overpay on select assets. Interim CEO Simon Lowth said the company is on track to reach financial targets and build on with investment in long-term potential.
Revenue of 6.66 billion USD is however a whole 18% lower on constant exchange rates than last year, with loss of exclusivity constituting the bulk of that. The remained came from supply chain limitations at a plant in Sweden. Core EPS of 1.53 USD is down only 6% as a gain of 0.19 per share on a cross border transfer pricing issue settlement was recorded. The company maintains core EPS target range for the full-year at $5.85 to $6.15. The Board has recommended an interim dividend of 0.90 USD (58.1 GBp or 6.26 SEK) with Ex-dividend date being August 8th. The share is pointing to a lower open.
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