AstraZeneca impresses but says tough times are ahead

AstraZeneca today posted a 2% rise in annual profit to $10.9 billion (£6.9 billion), but warned of pain ahead as withdrawal symptoms kick in from blockbuster pills falling out of patent.

Higher sales of big brands such as cholesterol medicine Crestor and bipolar drug Seroquel XR helped Britain's second-largest drugmaker's sales rise 3% to $33.3 billion last year.

It said that although US profits fell because of rising competition from generic drugs, emerging markets - where sales topped $5 billion for the first time - made up for it.

Astra raised its dividend 11% to $2.55 and it set out plans to buy back shares worth $4 billion this year after returning $2.1 billion to investors last year. But it admitted the "coming years will be challenging for the industry and for the company", as its sales undergo a period of "exclusivity losses".

At the end of 2010, Astra wrote off $445 million when it abandoned children's drug Motavizumab. It faced another setback when the US drug regulator refused to approve its new heart medicine, Brilinta.

Today chief executive David Brennan said: "Our performance in 2010 underlines the strength and resilience of AstraZeneca."