AstraZeneca Pharma (India), a part of AstraZeneca Pharmaceuticals AB, Sweden with shareholding of over 90 per cent, has suffered minor setback during the fourth quarter ended December 2009 and its net profit declined by 3.6 per cent to Rs 22.09 crore from Rs 22.92 crore in the corresponding period of last year. Its earnings before interest, depreciation and taxation also moved down to Rs 35.08 crore from Rs 38.51 crore. The company's net sales, however, improved by 22.6 per cent to Rs 114.84 crore from Rs 93.67 crore.

AstraZeneca's management declared hefty dividend of 500 per cent per share of Rs 2 each for the year ended December 2009. The company has changed its accounting year from January-December to January-March 2011. Accordingly, the next financial accounting year will be period of 15 months.

For the 12 months period ended December 2009, AstraZeneca's net sales increased by 13.5 per cent to Rs 385.52 crore from Rs 339.77 crore. Despite higher sales, its net profit declined sharply by 22 per cent to Rs 57.62 crore from Rs 73.84 crore, mainly due to lower other income and higher employees cost. Its other income declined to Rs 5.74 crore from Rs 13.88 crore.

The company has embarked on a long term growth strategy to significantly enhance its market presence by launch of new products o expand its product portfolio, coupled with consequential expansion of its field force. Towards this strategy the company has made considerable investments in expanding its field force in the fist half of FY2009 which has resulted in increased manpower costs to Rs 82.83 crore from Rs 62.17 crore in the previous year. This in turn has significantly impacted the profitability for the current period compared to the corresponding period of FY 2008.