AstraZeneca, one of Europe’s biggest drug makers, has increased its full-year earnings forecast as it reported better-than-expected results for the second quarter today.

The 9 per cent increase in sales and 7 per cent rise in core earnings per share (EPS) in the three months to the end of June was in spite of a 4 per cent drop in US sales as sales of Toprol-XL. The treatment, used to treat high blood pressure, fell because of competition from generic drugs.

The results were aided by a weak dollar, the currency in which AstraZeneca reports. Emerging markets had strong growth, reaching more than $1 billion of sales in the second quarter for the first time.

Pre-tax profit for the second quarter rose 14 per cent to $2.28 billion (£1.15 billion) on sales of $7.96 billion.

The drugmaker said that it expected core earnings per share for the year of between $4.60 and $4.90, up from the $4.45-4.75 previously anticipated. Its shares rose 97p, or 4 per cent, to £24.89.

AstraZeneca is facing a profits decline after 2011 as patents expire on some of its best-selling drugs. It recently paid $15 billion for MedImmune, a US biotechnology company that specialises in vaccines.

David Brennan, chief executive of AstraZeneca, said: “During the first half of 2008, AstraZeneca has made good progress on three fronts: performance, pipeline and patents. The business is on track to achieve its increased financial target for the year and continues to strengthen the pipeline.”

The company hopes to save $1.4 billion a year by 2010 through a cost-cutting programme that includes job cuts at its Macclesfield research centre.

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