* 2020 revenue growth seen around 10%, including virus hit
* CEO says limited impact on operations so far
* Q4 product sales, core EPS fall short of expectations
* Shares fall as much as 6% before recovering
(Recasts with CEO, analyst comments on outbreak; updates
shares)
By Pushkala Aripaka and Ludwig Burger
Feb 14 (Reuters) - AstraZeneca forecast a likely
slowdown in revenue growth this year, assuming a hit from
China's coronavirus epidemic lasting up to a few months,
although it added there had been limited disruption to its
operations so far.
Shares in the company, one of the world's major drugmakers,
tumbled as much as 6% in early Friday trade after fourth-quarter
results also missed analysts' expectations.
However, they recovered after CEO Pascal Soriot played down
the impact of the coronavirus outbreak on the business so far.
He told Reuters revenues could reach the top end of its guidance
range if the epidemic was brought quickly under control.
The company, moving into a third year of growth, predicted
revenues would rise by a high single-digit to a low double-digit
percentage at constant exchange rates this year, compared with
13% in 2019.
Analysts are currently forecasting growth of 10%, according
to Refinitiv data, although Jefferies analysts said anything
below a double-digit estimate could be a disappointment.
"We want to be actively conservative in our outlook," Soriot
said on a call with journalists, describing the situation around
the virus that has killed more than 1,350 people in China and
infected tens of thousands more, as "full of uncertainty."
"So far, we have limited disruption," he added.
At 1312 GMT, AstraZeneca shares were down 2.3% at 7,448
pence.
China was once again a key driver for the firm in the final
quarter of 2019, with sales there surging 28% to $1.19 billion,
making up 19% of total product sales in the period.
"Now in a much better place, AstraZeneca should be able to
weather any coronavirus-related storm," AJ Bell investment
director Russ Mould said.
Last week, British rival GSK said it had not faced
much disruption to its supply chain from the virus outbreak, but
was monitoring the situation.
SALES DISAPPOINT
In the fourth quarter, AstraZeneca's product sales of $6.25
billion and core earnings of 89 cents per share missed analysts'
expectations, according to a company-provided consensus.
Sales of its top-selling cancer drug Tagrisso fell short of
forecasts due to adjustments for U.S. rebates and discounts,
Bryan Garnier analyst Eric Le Berrigaud said.
"New drugs which were growth drivers all through 2019 posted
below-expectations fourth-quarter sales," Berrigaud said.
AstraZeneca forecast core earnings per share would rise by a
mid- to high-teens percentage in 2020, compared with just 1% in
2019 and analysts' current consensus forecast of about 20%.
Soriot also said the company was on track to reach an
operating profit margin target of more than 30% in 2021.
(Reporting by Pushkala Aripaka, Ankur Banerjee in Bengaluru and
Ludwig Burger in London; Editing by Patrick Graham and Mark
Potter)
Glaxosmithkline (GSK)
Astrazeneca (AZN)