AstraZeneca to disappoint with limited information on ulcer drug

ASTRAZENECA, the Anglo-Swedish drugs group, is to disappoint investors at its long-awaited research and development day next week when it releases less information than expected on esomeprazole, the anti-ulcerant aimed at insulating the company from forthcoming patent expiries.

Investors had been expecting the company to disclose data for the first time on phase III trials of esomeprazole on Monday. However, it emerges the data will come in two waves, with some on Monday and a more detailed tranche at a medical conference in Israel in the new year.

A spokesman for AstraZeneca said: "There will be information on esomeprazole on Monday, what will follow after that we cannot say."

It is hoped that esomeprazole will protect AstraZeneca from an expected decline in revenues from Losec, the anti-ulcerant facing patent expiry from October 2001. The company has already filed suits against eight companies seeking to launch generic rivals against Losec.

AstraZeneca shares have gained more than pounds 6 since August in anticipation of the R&D day. Speculation that the group is close to addressing the problems in its agrochemicals division, which the group said in July was under review, has also buoyed the shares.

While there were suggestions yesterday that AstraZeneca is to combine its agribusiness with that of Novartis, the Swiss life sciences group, in a joint venture, these were met with scepticism by some London analysts. Both companies share strong fungicide products, in AstraZeneca's case with Amistar and in Novartis' with Flint. A combination of the two portfolios would create the world's largest agribusiness and be likely to fall foul of anti-trust authorities. The companies declined to comment on the rumours.

One analyst said: "What AstraZeneca needs to do is get rid of its agribusiness, not merge it."

Some sources said Novartis may simply demerge its agribusiness. While AstraZeneca and Novartis are seen as sellers of their agrochemical assets, fellow life-science groups such as BASF and Bayer of Germany, and Monsanto and DuPont of the United States are tipped as possible buyers.