AstraZeneca upgrades sales guidance after third quarter growth
AstraZeneca reported its year-to-date results following the end of its third quarter on Thursday, claiming that patients would benefit from further progress to its pipeline, while sales-growth momentum continued to drive its operating leverage.
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The FTSE 100 pharmaceuticals giant said its year-to-date product sales growth stood at 13%, or 17% at constant exchange rates, to $17.32bn.
That included third-quarter product sales of $6.13bn, which was up 16% year-on-year, or 18% at constant exchange rates.
It said the third quarter once again saw AstraZeneca’s three therapy areas, and every sales region, produce “encouraging” performances, including the continued performance of new medicines, with sales growth in the quarter of 62% - or 64% at constant exchange rates - to $2.71bn, including new-medicine growth in emerging markets of 85%, or 90% at constant exchange rates, to $539m.
Sales growth by therapy area in the quarter saw oncology grow by 46%, or 48% at constant exchange rates, to $2.33bn; new cardiovascular, renal and metabolism (CVRM) by 8%, or 11% at constant exchange rates, to $1.11bn; and respiratory by 15%, or 18% at constant exchange rates, to $1.32bn.
Looking at it by region, total emerging markets sales grew by 25% in the quarter, or 29% at constant exchange rates, to $2.12bn, with China sales rising 35%, or 40% at constant currency, to $1.28bn, which the board said was ahead of longer-term trends.
US sales increased 17% to $2.03bn, while Europe sales continued their return to growth, rising by 1% - or 4% at constant exchange rates - to $1.14bn.
Japan sales were ahead 31%, or 27% at constant currency, to $657m.
AstraZeneca also upgraded its product sales guidance at constant exchange rates for the year as part of the update.
The board said product sales were now expected to increase by a “low to mid-teens percentage”, compared to its prior guidance for a “low double-digit percentage” increase.
“With AstraZeneca growing at pace, our sales guidance has been upgraded for the second consecutive quarter,” said chief executive officer Pascal Soriot.
“Another strong performance from our new medicines accompanied impressive results in our key markets, most notably in China, the US and Japan.
“The performance reinforces our confidence in delivering sustainable earnings growth.”
Soriot noted that the company delivered further positive news for patients during the period, with ‘Lynparza’ demonstrating its potential as a treatment for prostate cancer and as an expanded treatment for ovarian cancer.
‘Tagrisso’, ‘Imfinzi’ and ‘PT010’ also had positive data, Soriot said, adding that the company delivered “breakthrough data” in heart failure for ‘Farxiga’.
“We are continuing to ensure that we capture the benefits of our growth by balancing reinvesting in our business, delivering on our sustainability commitments, continuing to improve our operating leverage and cash generation.”
As at 0810 BST, shares in AstraZeneca were up 2.15% at 7,068p.