By Helena Smolak
AstraZeneca said it forecasts sales and earnings growth this year after fourth-quarter results beat expectations, as strength in its oncology business offset weak China sales, but warned of a potential fine from a drug-import probe in the country.
The results lifted AstraZeneca's shares, which rose as much as 5% in European morning trade.
AstraZeneca said it could face a fine of up to $4.5 million if it is found liable in a probe into illegal drug-import allegations in China. The company had previously said current and former employees in China were under investigation and vowed to cooperate with authorities.
The company said Shenzhen's customs office notified it of suspected unpaid import taxes of $900,000 and that it might get a fine of between one and five times that amount. AstraZeneca said it believes the taxes relate to its Imfinzi and Imjudo cancer drugs, but Chief Executive Pascal Soriot said in a conference call the probe could possibly involve more drugs.
Looking ahead, AstraZeneca forecasts revenue would increase by a high single-digit percentage in 2025, with core earnings per share rising at a low double-digit percentage, when excluding currency movements.
AstraZeneca said core earnings per share--its preferred metric, which strips out exceptional and other one-off items--were $2.09 for the three months ended Dec. 31, up from $1.45 for the comparable period a year earlier. This compared with estimates of $2.07 taken from a company-compiled consensus.
After-tax profit rose to $1.50 billion from $959 million.
Total revenue for the quarter was $14.89 billion, ahead of expectations of $14.2 billion, and up from $12.02 billion the year before.
AstraZeneca's sales in China fell 1% to $1.36 billion. The company attributed the decline to low rates of seasonal respiratory viral infections and year-end hospital dynamics.
Chief Financial Officer Aradhana Sarin in January warned the company's China business could suffer a revenue impact in the last quarter of the year and going into this year amid the probe.
Investors' greatest concern had been the impact of the China investigation on the business, which seems manageable so far and appears to be progressing toward an eventual resolution, Barclays analysts said in a note to clients.
Write to Helena Smolak at helena.smolak@wsj.com
(END) Dow Jones Newswires
February 06, 2025 05:52 ET (10:52 GMT)
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