Pharmaceutical giant AstraZeneca (AZN) made a strong start to 2022, reporting first quarter revenues up 60% to $11.39 billion and core EPS up 20% to $1.89.
The increase in revenues was due to growth across the company’s drug franchises as well as a contribution from Alexion medicines and several Covid-19 contracts expected to be delivered in the first half.
The company said a ‘phasing’ of costs during the quarter benefited operating margins. Adjusted operating profit increased 60% year-on-year to $3.96 billion, representing a margin of 34.8%.
GUIDANCE REITERATED
Not surprisingly, given the strong start to the year, the company reiterated full year guidance.
Total revenues are anticipated to grow at a mid-to-high teen percentage leading to core earnings per share growing at a mid-to-high twenties percentage.
Covid-19 revenues are expected to decline by a low-to-mid twenties percentage. A decline in Astra’s Covid-19 vaccine sales is expected to be partially offset by growth in sales of the firm’s Covid-19 antibody drug, Evusheld.
After a strong run in the shares, which gained almost 20% over the last month, they gave back 0.6% on Friday to £104.96.
CANCER FRANCHISE LEADS GROWTH
Chief executive Pascal Soriot commented: ‘2022 has started strongly for AstraZeneca.
‘Farxiga achieved $1 billion revenue in the quarter and our Oncology medicines delivered Product Sales growth of 18%, despite COVID-19 continuing to impact cancer diagnosis and treatment.’
Farxiga is part of the Cardiovascular, Renal & Metabolism division and is used to treat patients with chronic kidney disease.
The company’s leading cancer drugs continued their strong growth with lung cancer treatment Tagrisso and Breast cancer treatment Lynparza both growing revenues by 17% to $1.3 billion and $0.6 billion respectively.
The rare diseases division increased revenues by 7% in constant currencies to $1.69 billion and now represents around 15% of total revenues.
