AstraZeneca predicts strong 2021, even without Covid vaccine

AstraZeneca posted a spike in final revenues on Thursday, fuelled by strong demand for its oncology drugs, and predicted further strong growth for the current year.

The Anglo-Swedish drugs company, which last year developed a Covid-19 vaccine in conjunction with Oxford University, said total revenues rose 9% to $26.6bn in the year to 31 December 2020. Product sales rose 10% to $25.9bn.

Earnings per share more than doubled, to $2.44 compared to $1.03 a year previously, or by 15% to $4.02 once exceptional items were stripped out. Pre-tax profits were $3.9bn, up from $1.5bn in 2019.

Much of the growth was fuelled by the oncology division, which saw sales growth of 23% to $11.5bn. In the cardiovascular, renal and metabolism division, sales rose 7% to $4.7bn, but they dipped 1% in respiratory and immunology to $5.4bn, due to the impact of Covid-19 in China.

Chief executive Pascal Soriot said 2020 had been "a significant step" for the company.

"Despite the significant impact from the pandemic, we delivered double-digit revenue growth to leverage improved profitability and cash generation," he said. "The consistent achievements in the pipeline, the accelerating performance of our business and the progress of the Covid-19 vaccine demonstrated what we can achieve, while the proposed acquisition of Alexion is intended to accelerate our scientific and commercial evolution further."

AstraZeneca announced at the end of 2020 that it would acquire US drugs firm Alexion Pharmaceuticals, its largest ever acquisition, for $39bn.

Looking to the current year, AstraZeneca is now expecting total revenue to increase by a low-teens percentage, "accompanied by faster growth in core EPS to $4.75 to $5.00".

That guidance does not, however, incorporate any revenue or profit impact from sales of the Covid-19 vaccine, which was approved for use in the UK on 30 December. AstraZeneca said it would report these sales separately in the next quarter.

The guidance also excludes the proposed acquisition of Alexion, which is expected to close in the third quarter of the current year.