AstraZeneca upbeat on margins as pipeline rebuilt

Europe's third biggest drugmaker said it had the potential for sales growth over the next five years in line with projected market growth, despite generic competition to a number of its medicines.

Coupled with further productivity gains, that should boost operating margins and generate substantial cashflow for reinvestment in the business and for returning to shareholders.

"We know what it will take to continue to deliver a strong performance over the next five years. While new products will play a role, many of the ingredients for continuing our momentum can be found in our product range," Chief Executive David Brennan said.

"The delivery of earnings growth ahead of sales is within our reach," he told analysts, after presenting a snapshot of the group's product portfolio at its Annual Business Review day.

Industry analysts said there were no major surprises, with most new drugs continuing on track.

Shares in the group, which trade on around 15 times this year's forecast earnings against a European sector average of 16.5, were 2.3 percent lower at 28.48 pounds by 0840 GMT, in line with a sharply weaker overall market.

AstraZeneca is struggling to persuade investors of the promise of its new-drug pipeline following a number of setbacks to late-stage products which have damaged long-term growth prospects.

The latest such blow was a decision last month to scrap development of diabetes drug Galida, once touted as a potential blockbuster.

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