29 Apr, 2010 12:01 CET

Revenue for the first quarter increased by 7 percent at constant exchange rates (CER) to $8,576 million.

-Emerging Markets revenue increased by 19 percent at CER; Company provides enhanced regional revenue reporting.

-Crestor sales increased by 27 percent at CER.

Core operating profit increased by 10 percent at CER to $3,857 million.

-Benefit from revenue growth and cost discipline, partially offset by lower gross margin.

Core EPS increased by 23 percent at CER to $2.03.

-Core EPS benefited by $0.13 from net adjustments to tax provisions as a consequence of the previously disclosed settlement with UK Tax Authorities and developments in other transfer pricing matters. The effective tax for the quarter was 21 percent. Company continues to anticipate the full year tax rate to be around 27 percent.

Reported EPS increased by 23 percent at CER to $1.91.

Net debt was $759 million at 31 March 2010.

-Strong cash generation from operations more than offset by the payment of the second interim dividend of $2,367 million, first instalment of the tax settlement, and investment in external pipeline opportunities during the quarter.

Core EPS target for the full year increased to the range of $6.05 to $6.35.

Financial Summary

[For table see pdf]

David Brennan, Chief Executive Officer, said: "The first quarter results reflect continued strong market performance for key brands like Crestor, Seroquel and Symbicort. We saw revenue growth in all major regions, including another strong quarter in Emerging Markets. Looking forward, revenue comparisons will become more challenging in the second half of the year as a result of the uplift from Toprol-XL and H1N1 vaccine sales in 2009 and the expiration of the Arimidex patent later this year. Based on the first quarter performance and the outlook for the remainder of the year we have increased our Core EPS target. Our pipeline has been further strengthened during the quarter by the addition of a new late-stage development project in rheumatoid arthritis from Rigel Pharmaceuticals."


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