New drug hopes at AstraZeneca

DRUGS giant AstraZeneca today attempted to draw a line under recent problems with its Exanta treatment for blood-clotting by highlighting its strong drugs pipeline and earnings prospects.

The group saw 11% wiped off the value of its shares in September when a committee of America's all-powerful Food and Drug Administration raised doubts about the safety of Exanta, hailed as the first breakthrough in blood clots and strokes for 60 years. The shares fell 42p to 2241p in reaction to today's update.

Chief executive Tom McKillop confirmed previous earnings forecasts as he underlined the potential for new blockbusters in the future. The company revealed it has 28 potential drugs in phase I and phase II human trials, 60% more than in the latter stage a year ago.

In the current blockbuster category, AstraZeneca said Crestor, the anti-cholesterol drug, had seen its share of US prescriptions rise to 7.5% in the penultimate week of September. This will be used as evidence that the drug has not 'stalled' at 7%, as suggested by some observers.

Meanwhile, Nexium, an ulcer treatment, has become the world's sixth-largest pharmaceuticals product, with sales in the second quarter of $4.2bn (£2.4bn). Iressa, an anti-cancer drug, has seen prescriptions jump 25% since new data was published.

However, as expected, the company had little new to say about Galida for diabetes and Cerovive, a stroke treatment. These two, currently in the phase III clinical trials, are seen as two of its main near-term prospects. Follow-up studies on Galida have been extended for two years, pushing out the drug's possible approval date from 2006 and into 2007.

McKillop is under pressure from the City to revive confidence in AstraZeneca's future drugs prospects. He said: 'With $10bn in annual sales of newer products growing strongly, good progress across the development portfolio and success in emerging markets, AstraZeneca is well-positioned to overcome the recent disappointment on Exanta and meet the wider challenges facing the industry.'

The company said it was on track to deliver earnings per share for 2004 'around the middle' of the range of $2 to $2.15 announced at the start of the year.

AstraZeneca is making a strong play for emerging markets. Since 2001, it has added 2,000 sales and 500 other staff to boost these operations.

It now claims to be the leading drugs company in the top eight developing markets of the world. Priorities are Mexico and China, said to be the ninth and tenth largest pharmaceuticals markets.