LONDON (AP) -- Anglo-Swedish drug maker AstraZeneca says it expects to pay $1.1 billion to resolve a long-standing U.S. and British tax issue over allocation of profits to various national units.
AstraZeneca said Monday that the deal with tax authorities will resolve issues about transfer pricing going back to 2000. Transfer pricing is the allocation of a multinational group's profits among operations in various countries.
Because the amount to be paid is less than the provisions the company had made for the tax dispute, the agreement will add $500 million to first-quarter earnings, AstraZeneca says.
AstraZeneca shares were up 1 percent at 2,905 pence ($46.36) in midmorning trading on the London Stock Exchange.