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 AstraZeneca, which is seeking such deals to drive growth, will also
pay another $100 million after Actavis agreed to changes in ongoing
collaborations between the two firms.
Britain's second-biggest drugmaker said 2015 sales would decline by
a mid single-digit percent at constant exchange rates.
But adjusted or "core" earnings per share (EPS) are forecast to
increase by a low single-digit percent this year, due to lower
spending and plans to find partners on certain projects.
"We'll behave as a biotech company would when it comes to products
that are not core," Chief Executive Pascal Soriot told reporters,
citing a recent Alzheimer's deal with Eli Lilly as a model for
future cost-sharing.
The weak quarterly results knocked the shares back 1.9 percent by
1110 GMT (6:10 a.m. EST).
Citi analyst Andrew Baum said AstraZeneca appeared to have "kitchen-sinked"
the quarter, or taken a deliberate hit to earnings by bringing
forward some drug development costs. Deutsche's Mark Clark said this
should help secure 2015 profits.
The group, which fended off a $118 billion bid by Pfizer <PFE.N>
last year, saw sales in the fourth quarter fall 2 percent to $6.68
billion, generating core earnings down 38 percent at 76 cents a
share.
Industry analysts had on average forecast sales of $6.79 billion and
earnings of 82 cents, according to Thomson Reuters.
Buying the Actavis respiratory drugs builds on AstraZeneca's
acquisition of Almirall's lung drugs last July and gives it global
rights to inhaled medicines containing aclidinium, which helps open
airways. Actavis had owned North American rights under an earlier
agreement with Almirall.
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Respiratory is a key therapeutic area for AstraZeneca, which has
predicted a 75 percent jump in annual sales to $45 billion by 2023.
"We are on track to return to growth by 2017 and are well positioned
to deliver our long-term goals," Soriot said.
AstraZeneca's promising cancer drugs have won over many investors
but it faces near-term profit pressure from loss of exclusivity on
older drugs, with the arrival of generic copies of heartburn and
ulcer medicine Nexium in the United States a big challenge in 2015.
After reporting core 2014 EPS of $4.28, Soriot and his team have
good reason to ensure earnings hold up this year, since management
incentives only vest fully if earnings remain at or above $4.20.
(Editing by David Holmes, Jane Merriman and Susan Thomas)
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