Zinger Key Points
- AstraZeneca's Q3 sales rose 18% YoY to $13.6 billion Adjusted EPADS hit $1.04, exceeding expectations.
- U.S. investment of $3.5 billion announced to bolster research and manufacturing.
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AstraZeneca Plc AZN reported third-quarter sales of $13.57 billion, up 18% year over year (+21% at constant currency), beating the consensus of $13.09 billion.
The company’s adjusted EPADS reached $1.04, beating the consensus of $1.03. The adjusted EPS was $2.08 (1 ADR = 2 Common Shares).
AstraZeneca’s top business, oncology, increased 19% (up 22% on constant currency) to $5.57 billion.
- Tagrisso sales were up 14% to $1.67 billion (17% at CER), Calquence sales increased 24% (25% at CER) to $8.13 million, and Enhertu revenue was up 50% (55% at CER) to $510 million.
Cardiovascular, Renal, and Metabolism (CVRM) sales increased 18% (up 20 at CER)% to $3.16 billion.
- Farxiga sales were up 25% (27% at CER) to $1.94 billion, and Lokelma sales increased 40% (42% at CER) to $143 million.
R&I Respiratory & Immunology sales increased 26% (29% CER) to $1.96 billion.
Rare Disease drug sales increased by 9% (+11% at CER) to $2.15 billion.
Guidance: For fiscal year 2024, AstraZeneca forecasts total revenue and core EPS to increase by a high-teens percentage, compared to prior guidance of a mid-teens percentage.
AstraZeneca also said that, along with its partner Daiichi Sankyo Ltd DSKNY, it has submitted a new biologics license application for accelerated approval of datopotamab deruxtecan (Dato-DXd) for locally advanced or metastatic epidermal growth factor receptor-mutated non-small cell lung cancer patients who have received prior systemic therapies.
“We take the matters in China very seriously. If requested, we will fully cooperate with the authorities. We remain committed to delivering innovative life-changing medicines to patients in China,” the company said.
AstraZeneca’s third-quarter revenue in China was $1.7 billion, representing a 15% growth at constant exchange rates.
As per a financial media company Yicai report last week, senior executives at AstraZeneca China are embroiled in a significant insurance fraud case, marking one of the most extensive scandals in China’s pharmaceutical industry in recent years.
The company has not received any notification that it is itself under investigation. If requested, AstraZeneca will fully cooperate with the Chinese authorities.
On Tuesday, the European pharma giant announced $3.5 billion of capital investment in the U.S., which will be used to expand the company’s research and manufacturing footprint by the end of 2026.
This includes $2 billion of new investment in new spending on research and development and on plants that manufacture biologics medicines and cell therapies.
The new investments will expand manufacturing sites in Maryland, Texas, and California and create 1,000 high-skilled jobs.
“Our multibillion-dollar investment reflects the attractiveness of the business environment together with the quality of talent and innovation capabilities here in the United States,” CEO Pascal Soriot said.
AstraZeneca also released high-level results from the KOMET Phase 3 trial of Koselugo (selumetinib) in adults with neurofibromatosis type 1 (NF1) who have symptomatic, inoperable plexiform neurofibromas.
The data showed that Koselugo met its primary endpoint, demonstrating a statistically significant and clinically meaningful objective response rate versus placebo.
Price Action: AZN stock is down 0.89% at $64.22 at the last check on Tuesday.
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