AstraZeneca Q2 Earnings Beat Consensus Despite Zero COVID-19 Vaccine Sales, Stock Shoots Up

AstraZeneca Plc's AZN unit Alexion has agreed to buy Pfizer Inc's PFE preclinical gene therapy programs and enabling technologies for up to $1 billion, plus royalties on sales.

AstraZeneca bought Alexion in 2021. It focuses on rare diseases, AstraZeneca said. It plans to close the deal in the third quarter.

The deal will bring a number of novel adeno-associated virus (AAV) capsids to Alexion and help build on Alexion and AstraZeneca's capabilities in genomic medicine, it said.

AAV capsids have been shown to be an effective mechanism for delivering therapeutic gene cargo for gene therapy and gene editing.

AstraZeneca has reported Q2 FY23 core EPS of $2.15, up 25% Y/Y (+38% on constant currency).

The strong performance of its blockbuster cancer drugs helped offset the loss of COVID-19 vaccine sales.

Total revenue in the quarter was $11.4 billion, up 6%, beating the analyst estimates of $10.96 billion.

The company registered no sales of its COVID-19 vaccine (Vaxzevria) compared to $455 million a year ago.

"Each of our non-COVID-19 therapy areas saw double-digit revenue growth, with eight medicines delivering more than $1bn of revenue in the first half, demonstrating the strength of our business," Chief Executive Pascal Soriot said.

"Several medicines grew rapidly, including Ultomiris, Imfinzi/Imjudo, and Farxiga, with revenues up 64%, 57%, and 40%, respectively," Soriot added.

Guidance: AstraZeneca reiterates FY23 guidance with revenue to increase by a low-to-mid single-digit percentage and low double-digit percentage, excluding COVID-19 medicines.

Core EPS is expected to increase by a high single-digit to a low double-digit percentage.

Price Action: AZN shares are up 5.66% at $72.00 during the premarket session on the last check Friday.