AstraZeneca Lifts Profit Target

During the quarter, AstraZeneca was paced by Seroquel, its second-biggest product, whose worldwide sales jumped 32% to $706 million. Nexium, the top seller, posted sales $1.13 billion, up 18% from the same period last year. Sales of Toprol XL advanced 23% to $437 million.

The asthma drug Symbicort, which isn't available in the U.S, saw sales climb 28% to $240 million. The company filed an application with the FDA last month to try to get clearance for the drug. The breast cancer drug Arimidex gained 36% to $303 million. The cholesterol drug Crestor advanced 23% to $325 million.

The company's R&D news produced some ups and downs, says Mark Purcell of Deutsche Bank Securities in a Thursday research report. An experimental cancer drug continues in clinical trials, but a prospective drug for overactive bladder has been scrapped. Research on a pill for erratic heartbeats has been canceled, but clinical trials continue on the intravenous form of the medication.

A combination of strong sales trends for several big drugs and "disciplined cost management" encouraged Purcell to retain a buy rating, although other analysts are less enthusiastic because of what they perceive as uncertain prospects for experimental drugs, such as Galida for diabetes and Cerovive for stroke.

The keys to near-term growth, Purcell says, will be Crestor, Nexium and Seroquel, as well as the evolution of the U.S. cholesterol drug market. Crestor belongs to a group of drugs known as statins, which includes Pfizer's (PFE Quote) Lipitor, Merck's (MRK Quote) Zocor and Bristol-Myers Squibb's (BMY Quote) Pravachol. Zocor and Pravachol lose U.S. patent protection next year.

Last week, Pfizer reported softening Lipitor sales, adding that it didn't know if the trend was temporary or permanent. In addition, Pfizer expects to hear a judge's verdict on a patent challenge to Lipitor in a few months.