LONDON, Jan 27 (AFP) - Troubled Anglo-Swedish drugs giant AstraZeneca reported on Thursday a 15.7-percent rise in profits for 2004, despite controversy over key products and amid speculation about the future of its chief executive.
Pre-tax profits before exceptional items rose by 15.7 percent to 4.87 billion dollars (3.7 billion euros) for 2004 compared with 4.2 billion in the previous year, meeting analysts' consensus forecasts.
Sales for 2004 were in line with analysts' expectations, rising 13.83 percent to 21.4 billion dollars compared with 18.8 billion in the previous year, driven by a strong performance from the group's ulcer drug Nexium, anti-psychotic Seroquel and cholesterol drug Crestor, the group said.
The price of shares in AstraZeneca closed 4.10 percent higher at 1,980 pence in London.
AstraZeneca chief executive Tom McKillop meanwhile dismissed media reports that a successor was being groomed for his job.
"My position hasn't changed one iota. I am totally committed to AstraZeneca, I will serve this company as long as the board would like me to," McKillop told reporters.
The latest edition of Britain's Sunday Telegraph newspaper said McKillop had been approached by the Royal Bank of Scotland to join its board with a view to grooming him as its next chairman.
Weekend reports had said also that AstraZeneca shareholders were urging the group's board to waive a one million-pound (1.4-million-euro, 1.9-million-dollar) performance bonus lined up for McKillop.
Investors were understood to be seeking the gesture from the chief executive after shares in the company fell by 30 percent during 2004 amid concerns over many of its key medicines, The Independent on Sunday said.
McKillop shrugged off the group's troubles, saying AstraZeneca had achieved "an excellent financial performance in 2004, despite some disappointment with recently introduced products".
AstraZeneca is striving to overcome a series of damaging setbacks, including the provisional rejection by US regulators of its blood-thinning drug Exanta and an admission that its Iressa cancer treatment was unable to prolong the life of patients significantly.
The group announced Thursday it had taken a 71-million-dollar charge against its operating profit in the fourth quarter relating to Exanta inventories and a charge of 85 million dollars relating to stockpiles of Iressa.
"The setbacks with Exanta and Iressa are disappointing but the business remains robust," AstraZeneca said in a statement.
McKillop added that the group was determined to restore shareholder confidence and deliver good earnings growth in the coming years through strong sales growth from key products.
01/27/2005 17:31 GMT - AFP