LONDON: Anglo-Swedish drugmaker AstraZeneca on Tuesday said it had agreed to pay the British state 505 million pounds (575 million euros, 786 million dollars) to settle a long-standing tax dispute.

By agreeing to resolve claims dating between 1996 and 2010, AstraZeneca said it was able to upgrade its earnings outlook for 2010.

"AstraZeneca has increased its 2010 target for core earnings per share from 5.75-6.15 dollars to 5.90-6.30 dollars per share," the statement said.