AstraZeneca reiterates guidance after first quarter growth

AstraZeneca said on Friday that its total revenue for the first quarter surged 60% to $11.39bn (£9.07bn), with growth across the company seeing it reiterate its full-year guidance.

The FTSE 100 pharmaceuticals behemoth said the Alexion medicines and several Vaxzevria contracts, expected to complete delivery by the end of the first half, helped to lift its quarterly revenue.

It said total revenue from oncology increased 25%, including a milestone payment, while product sales from oncology increased 18%.

Total revenue from cardiovascular, renal and metabolism (CVRM) was up 18%, respiratory and immunology was ahead 4%, and rare disease grew 7%.

AstraZeneca said its operating margin in the quarter benefitted from the phasing of costs, while its core earnings per share increased 20% to $1.89.

The company reiterated its guidance for the 2022 financial year, expecting total revenue to rise by a “high teens percentage” and core earnings per share to grow by a “mid-to-high twenties percentage”, both at constant exchange rates.

“2022 has started strongly for AstraZeneca - Farxiga achieved $1bn revenue in the quarter, and our oncology medicines delivered product sales growth of 18%, despite Covid-19 continuing to impact cancer diagnosis and treatment,” said chief executive officer Pascal Soriot.

“High-level results from the DESTINY-Breast04 trial pointed to Enhertu's potential to redefine treatment of HER2‑low metastatic breast cancer, and Ultomiris became the first and only long-acting C5 inhibitor approved for generalised myasthenia gravis in the US.”

Soriot also said the company was unveiling plans for a new “strategic research and development centre” in the scientific hub of Cambridge, Massachusetts.

“In line with our sustainability commitments, it will be designed to the highest environmental standards.

“Our investments in pioneering science give us confidence of further advances in the years to come.”

At 0905 BST, shares in AstraZeneca were down 0.23% at 10,538p.