AstraZeneca Stock Tumbles After Q4 Performance - Here's Why

AstraZeneca Plc AZN reported fourth-quarter 2023 sales of $12.02 billion, up 7% Y/Y (+8% at constant currency), slightly below the consensus of $12.09 billion, fueled by strong global demand growth for cancer drugs.

Excluding COVID-19 medicines, fourth quarter 2023 revenue increased by 16% to $12.04 billion.

The company reported a core EPS of $1.45, up 5% (+7% on constant currency), with earnings per ADS reached $0.72, missing the consensus of $0.79.

Also Read: AstraZeneca Tries To Reach New Ground For Its Lead Cancer Drug Imfinzi With New Data In Liver Cancer Study.

Citing some analysts, the Wall Street Journal noted that AstraZeneca shares are down on disappointment on the quarterly product mix.

The company saw a solid performance in Oncology, where sales of cancer drugs jumped 21% to $18.5 billion in fiscal year 2023, and also saw double-digit growth in Cardiovascular, Renal and Metabolism (+18%), Respiratory & Immunology (+10%), and Rare Disease (+12%).

Tagrisso’s fourth-quarter sales increased by 6% to $1.42 billion. Infimzi sales increased 51% to $1.14 billion.

Lynparza sales reached $741 million, up 8%, and Calquence revenues increased 15% to $675 million.

AstraZeneca chief executive Pascal Soriot predicted that the company would generate revenue growth in low double-digits to low teens in 2024. “Our differentiated and growing portfolio of approved medicines, global reach, and rich R&D pipeline gives us confidence that we will continue to deliver industry-leading growth,” said Soriot.

Tuesday, AstraZeneca announced that it would invest $300 million into a new facility in Rockville, Maryland, to launch its cell therapy platforms in the U.S. for cancer trials and future commercial supply. The European pharma giant will create over 150 new jobs, initially focusing on producing T-cell therapies for global clinical trials.

Guidance: For fiscal year 2024, AstraZeneca says total revenues and core EPS are expected to increase by a low double-digit to low teens percentage at constant exchange rates.

Read Next: AstraZeneca Bolsters Cell Therapy Pipeline With Over $1B Deal For China-Based Gracell Biotechnologies.

Price Action: AZN shares are down 6.39% at $62.30 during the premarket session on the last check Thursday.

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