AstraZeneca Plc (AZN,AZN.L) on Monday reaffirmed its forecast for fiscal 2011, describing the recently released confidential information to analysts as inadvertent and out of date planning information, not representing the company's outlook for 2011 or for future periods. Reiterating the guidance issued on December 20, the British drugmaker emphasized that that was the most recent update of its outlook.
For the full year 2011, the company continues to expect core earnings per share in the lower half of the $7.20 to $7.40 range. On average, four analysts polled by Thomson Reuters expect the company to earn $7.31 per share for the full year. Such estimates typically exclude special items.
On December 20, AstraZeneca had said that its full-year core earnings guidance remains unchanged, although earnings would be in the lower half of this range due to impairment charges stemming from two studies.
The drugmaker then said that its investigational compound olaparib would not progress into Phase III development for the maintenance treatment of serous ovarian cancer. Additionally, attempts to identify a suitable tablet dose for use in Phase III studies were not successful.
Further, AstraZeneca's second RENAISSANCE Phase III study of TC-5214 for patients with major depressive disorder did not meet its primary end point.
The company would record pre-tax impairment charges of $381.5 million in the fourth quarter, comprising mainly $285 million charge related to the olaparib study. These impairments will have an about $0.21 negative impact on the company's core earnings per share.
Prior to this, AstraZeneca had lifted its full-year earnings forecast many times from its initial forecast of $6.45 to $6.75 per share.
While announcing strong third-quarter profit in October, the company said it continues to expect full-year revenue could range from flat to a low single-digit decline from last year on a constant currency basis, hurt by the loss of market exclusivity for Arimidex in the US and Europe. For the year, analysts expect revenues to be $33.58 billion.
In the year 2010, the company's earnings per share were $5.60 and core earnings per share were $6.71 on revenues of $33.27 billion.
AstraZeneca also backed today its planning assumptions for the 2010-14 period. The company continues to expect revenues in the range of $28 billion to $34 billion per annum over this period, as growth from key franchises that retain exclusivity and continued growth in emerging markets could be offset to an extent by the loss of market exclusivity on a number of products.
Based on pipeline developments, the company's latest risk-adjusted view is that revenue contribution from recently launched products and the pipeline would range between $3 billion and $5 billion.
AstraZeneca said it will provide specific financial guidance for 2012 and any updates to 2010 to 2014 mid-term planning assumptions while announcing its fiscal year 2011 financial results on February 2.
In the U.S., AstraZeneca shares closed on Friday at $46.97, up $0.12 or 0.26 percent.
On the London Stock exchange, the shares are currently trading at 3,029.50 pence, down 13 pence or 0.43 percent.
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