* One-off payments and tax benefit flatter Q2 results
* Investors focused on possible Pfizer return
* Q2 revenue $6.45 billion vs consensus $6.29 billion
* Q2 core EPS $1.30 vs consensus $1.10
* Now assuming generic Nexium in U.S. from Oct. 1 (Adds CEO comments from conference call, further analystcomment)
By Ben Hirschler
LONDON, July 31 (Reuters) - AstraZeneca raised itssales and earnings forecasts for the year on Thursday, showingresilience after seeing off a $118 billion takeover approachfrom rival Pfizer two months ago.
Second-quarter sales and earnings both beat expectations,helped by several one-off factors, including a product-relatedpayment from Pfizer worth $200 million.
Chief Executive Pascal Soriot has fought hard to demonstratethat AstraZeneca has a strong independent future and does notneed the kind of mega-merger offered by its bigger U.S. rival, despite the fact some investors favour a deal.
He declined to comment on whether Pfizer might return butsaid he would flag AstraZeneca's progress as a standalone groupat an investor day on Nov. 18 - just before a mandatorysix-month cooling off period ends and Pfizer can renew itsapproach.
Soriot has gained credit for his firm's pipeline ofpromising new cancer drugs, while the respiratory business hasbeen boosted by strong demand for Symbicort, which has takenbusiness from GlaxoSmithKline's rival drug Advair.
AstraZeneca moved to boost its lung drug franchise furtheron Wednesday by acquiring rights to Spanish group Almirall's lung treatments in a deal worth up to $2.1 billion.
Sales in the quarter rose 4 percent to $6.45 billion,despite generic competition to some drugs, generating coreearnings - which exclude certain items - up 8 percent at $1.30 ashare.
Industry analysts, on average, had forecast sales in thequarter of $6.29 billion and earnings of $1.10 a share,according to Thomson Reuters data.
"There is clearly visible momentum across our business as wecontinue to execute on our strategy of returning to growth andachieving scientific leadership," Soriot told reporters. "We nowhave one of the most exciting pipelines in the industry."
He also said he hoped to strike partnering deals in thesecond half of 2014 for certain anti-infective and neurosciencedrugs - including an experimental treatment for Alzheimer's -which will help reduce some of the firm's drug developmentcosts.
GENERIC NEXIUM DELAY
Revenue in 2014 is now expected to be in line with 2013 atconstant exchange rates - an increase on the previous forecastof a low to mid single-digit percentage decline - and coreearnings per share are set for a low double-digit declineinstead of a percentage decrease in the teens.
Deutsche Bank analyst Mark Clark said the resultsrepresented a "big beat" but were flattered by one-time itemsand the improved outlook for the year was likely to be taken inits stride by the market.
Shares in the company were little changed at 4,351 pence by1042 GMT.
A raft of patent expiries will pressure sales and profitsuntil at least 2017 but Britain's second-biggest pharmaceuticalsgroup is currently enjoying a partial reprieve, due to thedelayed U.S. launch of a generic form of heartburn pill Nexium.
AstraZeneca now assumes, for planning purposes, that genericversions of prescription Nexium will reach the U.S. market onOct. 1.
India's Ranbaxy Laboratories holds the rights tosell the first generic copy of the popular drug but itscontinuing problems with meeting regulatory standards inmanufacturing have delayed a launch.
AstraZeneca's quarterly results were also boosted by a $200million milestone payment from Pfizer, following the U.S.company's launch of an over-the-counter version of Nexium inMay, and a $80 million payment related to the Japanese launch ofdiabetes drug Forxiga.
The company enjoyed a further $117 million benefit from aninter-governmental agreement on a transfer pricing matter, whichcut the tax rate in the period sharply.
PFIZER RETURN?
Many investors believe Pfizer will be back in late Novemberafter an enforced six-month cooling-off period - assumingAstraZeneca does not invite it back before then - because thelogic of a deal remains strong.
Jefferies analyst Jeffrey Holford said the fact thatAstraZeneca had set an investor day for Nov. 18 implied it was"very unlikely" to invite Pfizer back for talks at the end ofAugust, as it could in theory do under British takeover rules.
Pfizer would slash its tax bill by moving its tax address toBritain, in a process known as inversion. The case for such taxinversions remains compelling, as evidenced by AbbVie's successful pursuit of Shire.
The U.S. company would not be drawn on its plans forAstraZeneca when it reported results two days ago but said itwas still considering big deals. (Editing by Tom Pfeiffer and Greg Mahlich)
Astrazeneca (AZN)
Glaxosmithkline (GSK)
