AstraZeneca profits rise

AstraZeneca's healthcare side saw profits up

Drugs group AstraZeneca has reported a sharp rise in profits despite the disappointing performance of some of its products.

Its pre-tax profits were $2.44bn (£1.63bn) in the first six months of this year. That is up from $2.09bn (£1.39bn) in the same period in 1999.

The Anglo-Swedish giant said that it managed to achieve the better results despite the weaker euro's impact.

Chief executive Tom McKillop said the company's five main drugs, which include its anti-heart disease drug Atacand and its Zomig migraine treatment, had "contributed strongly" to profit growth.

The company said merger cost savings had exceeded expectations, at £176.7m in the first half.

Closely watched

Mr McKillop said that overall sales in the first half of the year rose to £6.36bn, up from £6.03bn in the same period a year earlier.

But the firm's shares dropped as investors focussed on the slowing sales of anti-ulcer pill Losec.

Sales of the drug, although up overall for the period, were down in the second quarter to $1.4bn from $1.6bn in the first three months of the year.

Although Losec remains a key contributor to sales and profits, it is being closely watched for signs of a slowdown as it faces growing competition.