Yahoo Finance FTSE 100: Astrazeneca swings into profit amid double-digit revenue rise
AstraZeneca (AZN.L) reported a 25% rise in revenues to $44.3bn (£36.6bn/€41.2bn) as the pharma company expects to see another year of double-digit revenue growth in 2023.
The Cambridge-based business believes that this year it will only sell a small amount of the COVID-19 vaccine which shot the company into the limelight during the pandemic.
The company expects revenue from that vaccine to hit “minimal” levels. The now called Vaxzevria vaccine suffered a 94% drop in in sales during the last quarter of 2022.
Astrazeneca said it would see double-digit growth excluding COVID-19 medicines in 2023, but only single-digit growth when they are factored in.
Chief executive Pascal Soriot said: “2022 was a year of continued strong company performance and execution of our long-term growth strategy.
“We made excellent pipeline progress, with a record 34 approvals in major markets, and we are initiating new late-stage trials for high-potential medicines.”
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He added: “In 2023, we expect to see another year of double-digit revenue growth at CER (constant exchange rates), excluding our Covid-19 medicines.
“We will continue to invest behind our pipeline and recent launches while continuing to improve profitability.
“We plan to initiate more than 30 Phase III trials this year, of which 10 have the potential to deliver peak year sales over one billion dollars.”
He said the business is on a path to deliver at least 15 new medications before the end of the decade.
Britain's business climate is deterring pharma companies from making investments in the country, the CEO of AstraZeneca said on Thursday, citing his company's decision to shift plans for a new manufacturing plant to Ireland https://t.co/pKTtcWDQmI
— Padraic Halpin (@padraichalpin) February 9, 2023
The company still swung back into profit last year after losing $265m (£219.5m) before tax in 2021. Last year it made $2.5bn (£2.1bn).
Astrazeneca shares climbed over 4% in early trade.
Sheena Berry, equity research analyst at Quilter Cheviot, said: “AstraZeneca delivered mixed fourth quarter results, with sales a touch light, but with earnings per share better than expected. This was driven by some beats, but crucially it also missed on key products. One of the main takeaways from these results is the outlook. Management was keen to provide reassuring guidance for 2023 with double digit growth expected, excluding COVID-19 sales – the group expected its antibody treatment and vaccine to decline significantly in 2023 as the world continues to move on from the pandemic.
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“Astra’s share price outperformed in 2022 driven by the company executing with its pipeline and financially. Unlike its competitor GSK, AstraZeneca has a full pipeline with the group expecting to initiate more than 30 Phase III trials in 2023. A number of pivotal readouts are expected in 2023 but the main focus is currently on the upcoming results of Dato-Dxd in refractory lung cancer which has blockbuster potential if successful.
“If it is, or if it can get good outcomes from its other trials, AstraZeneca is well positioned to continue its positive momentum.”
Total revenues for the three months ended 31 December 2022 were $11.2bn, with an adjusted profit of $1.38 per share.
Sales of its best-selling cancer drugs – Tagrisso, Imfinzi and Lynparza – generated $1.34bn, $752m, $689m in the quarter respectively.
The pharma company said that growth came from all therapy areas, as well as the addition of Alexion Pharmaceuticals, a US acquisition that was added to Astra accounts starting in July 2021.
It also announced a second interim dividend of $1.97 per share, taking its full-year dividend per share to $2.90.
Watch: Drug companies face huge drop in sales in 2023
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