AstraZeneca lifts 2008 outlook as Q2 tops forecast

By Ben Hirschler

LONDON (Reuters) - Drugmaker AstraZeneca (AZN.L), enjoying a favourable tailwind from currencies, lifted its full-year earnings forecast on Thursday as second-quarter results came in ahead of expectations, boosting its shares.

A 9 percent increase in sales and 7 percent in "core" earnings per share (EPS) in the three months to end-June was helped by a weak dollar, the group's reporting currency.

Cholesterol fighter Crestor, schizophrenia drug Seroquel and Symbicort for asthma were key drivers, offsetting slowing revenues from top-seller Nexium, for acid reflux, which is suffering price competition from cheaper rivals.

For the full year, the Anglo-Swedish drugmaker said it now expected core EPS of between $4.60 and $4.90 (2.32 and 2.47 pounds), against $4.45-4.75 anticipated previously.

Many analysts had forecast a raised outlook, which followed an upgrade in April, but the increase exceeded expectations of around 5 cents, fuelling a rally in the stock.

"We've had a marked turnaround (in the share price) largely due to the fact that guidance has been increased by 15 cents ... it's very positive," said Charles Stanley analyst Jeremy Batstone-Carr.

AstraZeneca shares reversed earlier losses to stand 3.8 percent higher at 24.80 pounds by 11:40 a.m..

Reported pretax profit in the quarter rose 14 percent to $2.28 billion on sales of $7.96 billion, equivalent to core EPS of $1.25 versus analysts expectations of $1.13.