Quantcast
 
New ETF Book by Larry Connors - Click here to read more


 

Astra sets aside $520M for Seroquel case

Fri. October 30, 2009; Posted: 10:44 AM
Stocks RSS
Oct 29, 2009 (The Philadelphia Inquirer - McClatchy-Tribune Information Services via COMTEX) -- AZN | Quote | Chart | News | PowerRating -- Drugmaker AstraZeneca P.L.C. said today that it had set aside $520 million as part of a tentative agreement to resolve an investigation by federal prosecutors in Philadelphia into the company's marketing practices.

The London company, whose U.S. headquarters are in Wilmington, also announced a 22 percent increase in third-quarter net income, helped by initial sales of its H1N1 flu vaccine.

Expected increases in H1N1 vaccine sales led the company to boost its full-year profit forecast to $6.20 to $6.40 a share, from $5.70 to $6 a share.

The U.S. Attorney's Office in Philadelphia would not comment on its inquiry into AstraZeneca's promotion of its antipsychotic drug Seroquel. The investigation focuses on whether AstraZeneca promoted the drug, which is approved to treat schizophrenia and bipolar disorder, as a treatment for other illnesses.

In a statement, company spokesman Tony Jewell said: "The investigation also related to selected physicians who participated in clinical trials involving Seroquel."

Today, AstraZeneca said it had reached an agreement "in principle" to settle the probe. The company said it would not comment on whether it would admit to wrongdoing as part of the settlement.

Philadelphia investigators are part of a federal team that has brought cases against many drug companies for marketing products for unapproved uses. Doctors can prescribe a drug for any reason, but a company can promote it only for uses approved by the U.S. Food and Drug Administration.

In February, the Philadelphia U.S. Attorney's Office announced a $1.4 billion settlement with Eli Lilly & Co. over its efforts to market its antipsychotic, Zyprexa, to treat dementia and Alzheimer's disease, both unapproved uses.

AstraZeneca reported net income of $2.12 billion for the three months that ended Sept. 30, up from $1.74 billion in the same period a year earlier. Revenue rose 5.5 percent to $8.2 billion, supported by strong demand for the company's cholesterol drug Crestor alongside sales of the H1N1 vaccine and reduced generic competition.

Sales of the H1N1 nasal spray vaccine totaled $152 million in the quarter. AstraZeneca's chief financial officer, Simon Lowth, said the company was on track to deliver the 40 million doses ordered by the U.S. government by early next year.

Investors remain concerned about the company's drug pipeline, especially after AstraZeneca this week pulled its lung-cancer drug Zactima from regulatory clearance lists in the United States and European Union after disappointing trial results.

Seroquel sales were up 12 percent at $1.23 billion over the year-earlier quarter.

AstraZeneca's American depositary receipts closed today at $45.75, up 58 cents (1.28 percent).

This article contains information from the Associated Press.

To see more of The Philadelphia Inquirer, or to subscribe to the newspaper, go
to http://www.philly.com. Copyright (c) 2009, The Philadelphia Inquirer
Distributed by McClatchy-Tribune Information Services. For reprints, email
tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax
to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave.,
Suite 303, Glenview, IL 60025, USA.
For full details on Astrazeneca Plc (AZN) click here. Astrazeneca Plc (AZN) has Short Term PowerRatings of 6. Details on Astrazeneca Plc (AZN) Short Term PowerRatings is available at This Link.

    


More News:   Market Updates | Stock Alerts | All Trading News | Stock Index

Email
Print
Archives
Feedback
Email Article Link
Close X
Recipients email address
Your name
Your email
Add a note (optional)




Stocks RSS





Related News [AZN]
  UPCOMING EVENTS
Learn new strategies, how to trade in this market, and the stocks you should be focusing on each day. Join us for our free 20 minute tele-seminars during the week.
* Attendance is strictly limited and are filled on a first-come, first-served basis.
PREMIER SPONSORED LINKS
TRADE CENTER
 
The TradingMarkets Directory
RELATED SITES
Nothing but forex
Please call 1-213-955-5858 ext. 1

About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback

Disclaimer:

The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302

© Copyright 2009 The Connors Group, Inc.


All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarkets.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.

© 2009 The Connors Group, Inc.