AstraZeneca Joins Anti-Obesity Race Dominated By Eli Lilly And Novo Nordisk, Reports Mixed Q3 Earnings

AstraZeneca Plc AZN has reported Q3 FY23 core EPS of $1.73, up 4% Y/Y (+9% on constant currency). On the ADR basis, core earnings are $0.86 per share, beating the consensus of $0.84.

Total revenue in the quarter was $11.49 billion, up 5% (+6% CER), missing the analyst estimates of $11.66 billion.

Excluding COVID-19 medicines, Q3 2023 Total Revenue increased by 12% (13% at CER).

Guidance: AstraZeneca raised its annual earnings forecast and expects core earnings per share to increase by a low double-digit to low-teens percentage for the year, compared with a previous forecast of high single-digit to low double-digit percentage growth. 

It also expects total revenue to increase by a mid-single-digit percentage, compared with low-to-mid single-digit growth previously.

AstraZeneca also announced an exclusive license agreement with Eccogene for potential obesity treatment, ECC5004, an investigational oral once-daily glucagon-like peptide 1 receptor agonist.

Eccogene will receive an initial upfront payment of $185 million. 

In addition, Eccogene will also receive up to an additional $1.825 billion in future milestone payments.

AstraZeneca is granted exclusive global rights for ECC5004 in all territories except China, where Eccogene has the right to co-develop and co-commercialize in China alongside AstraZeneca.

The pharma giant also reported topline results from the EMERALD-1 Phase 3 trial of Imfinzi (durvalumab) plus transarterial chemo-embolization (TACE) and bevacizumab in hepatocellular carcinoma (HCC) patients eligible for embolization.

The trial demonstrated a statistically significant and clinically meaningful improvement in the primary endpoint of progression-free survival versus TACE alone. 

The trial continues to follow the secondary endpoint of overall survival.

Price Action: AZN shares are up 2.27% at $64.97 during the premarket session on the last check Thursday.