AstraZeneca (AZN) Settles Tax Dispute, Raises Forecast

British health care company AstraZeneca Plc (NYSE: AZN) announced on Tuesday that it had reached an agreement with the U.K. Revenue & Customs agency over a pricing dispute.

AstraZeneca agreed to pay 505 million pounds ($783 million) to settle the dispute. AstraZeneca will pay in two installments, one of 350 million pounds to be paid in March 2010 and another 155 million pounds paid in March 2011.

AstraZeneca's tax rate will be 2% lower in in 2010 as part of the deal, raising its forecast for 2010 earnings from between $5.75 and $6.15 to a range of $5.90 to $6.30.