Published - July 28th, 2023 @ 3:38 PM (GMT+2)
AstraZeneca's Exceeding Performance
Riding the wave of its highly successful cancer medications, AstraZeneca reported an impressive Q2 performance, beating predictions in profits and sales, despite a decrease in COVID-19 vaccine revenue. The robust performance was bolstered by its varied portfolio of drugs treating cancer, metabolic issues, and rare diseases, pushing its shares up to a peak of 4.8%. By 1052 GMT, shares leveled off at a 3.9% increase, making AstraZeneca the highest contributing gainer on the FTSE 100.
Boosting Investor Sentiment
The optimism was further fueled by positive comments by CEO Pascal Soriot regarding a crucial lung cancer trial. He expressed strong encouragement based on interim data from the TROPION-Lung01 trial. However, he stopped short of declaring the results as "clinically meaningful."
Earlier this month, interim results from the TROPION trial on a novel precision drug named datopotamab deruxtecan, caused an 8% drop in AstraZeneca's shares. However, Soriot confirmed the company's intention to submit trial data to U.S. regulators, offering some reassurance to investors.
Impressive Earnings Growth
The robust quarterly results included an adjusted profit of $2.15 per share, a 25% hike from the $1.98 per share expected, signifying continued robust performance from the UK's most significant company by market capitalization, valued at over $211 billion.
Strong Non-COVID Performance & China Growth
Contrastingly, the company reported no COVID-19 vaccine sales, in sharp contrast to its position as a top-seller in 2021, forecasting a significant sales decline for the full year.
With non-COVID-19 therapeutics witnessing double-digit revenue growth, AstraZeneca's strong business standing was reaffirmed. This was further emphasized by the 7% increase in sales in China, marking four consecutive quarters of growth.
The company further upgraded its China guidance, predicting total revenue growth of a low-to-mid single-digit percentage in 2023. AstraZeneca is China's leading drugmaker, accounting for 13% of last year's revenue.
Dismissing reports of a potential spin-off of its China business, Soriot confirmed satisfaction with the company's existing structure in China. He emphasized their focus on delivering medicines to patients and collaborating with local biotech companies.
Major Acquisition
Lastly, AstraZeneca reported that Alexion (NASDAQ:ALXN), its unit, has entered an agreement to acquire Pfizer's early-stage rare disease gene therapy portfolio for up to $1 billion, along with royalties on sales, to enhance its genomic medicine capabilities.
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