New product driving strong sales growth for pharma giant
Pharmaceutial group Astrazeneca reported product sales growth of 10% – or 14% on a constant exchange rate – for the first quarter today to £4.235bn, which it said was a reflection of the sustained performance of new medicines.
Total revenues of £4.255bn were a six per cent improvement on the same period a year ago, while the pre-tax profit of £587.40m was up from £290m.
The reported operating profit of £850.10m represented a 58% increase on last year, while the core operating profit of £1.278bn was an 84% improvement.
Global oncology sales increased by 54%, and respiratory sales increased by nine per cent.
Emerging markets sales increased by 14%; China sales increased by 21%, with ex-China emerging markets also delivering strong growth. US sales increased by 20%, while Europe sales declined by 12%. Japan sales increased by 26% to £388.24m.
Last month Astrazeneca announced a £5.3bn deal with Japanese group Daiichi Sankyo Company to develop and sell a promising cancer drug.
The Anglo-Swedish pharmaceutical giant said these financial results were accompanied by further positive pipeline developments, with 2019 set to be another busy year for news flow.
The group employs around 4,700 people in the North West on sites at Macclesfield and Alderley Park in Cheshire and Speke on Merseyside.
Chief executive Pascal Soriot said: “Our 14% product sales growth in the quarter reflected the success of our new medicines and emerging markets.
“In oncology, Tagrisso, Imfinzi and Lynparza continued to do well and, in BioPharma, Farxiga, Brilinta and Fasenra also grew strongly.
“Emerging markets, our largest sales region, delivered an outstanding performance with a 22% growth rate; all of its sub-regions grew strongly, including China at 28%.”
He added: “Our core operating profit almost doubled, demonstrating strong operating-margin improvement.
“Together with this encouraging financial start to the year, our highly-productive and sustainable pipeline continued to deliver, notably with a regulatory approval for Lynparza in the EU for the treatment of metastatic breast cancer and approvals of Farxiga in type-1 diabetes.
“The recently-announced collaboration with Daiichi Sankyo also broadened an exciting oncology portfolio with a potentially-transformative cancer treatment that could benefit patients around the world.
“We appreciate the support from our shareholders in realising this exceptional opportunity.”
As at March 31, the group had £6.35bn in financial resources – cash balances of £3.18bn and undrawn committed bank facilities of £3.18bn, of which £2.63bn is available until April 2022, £387.47m is available until December 2020, and £155m is available until December 2019, with only £2.87bn of debt due within one year.
Following today’s announcement, Astrazeneca said it reiterates its guidance for the 2019 financial year.
Last month the business announced plans to cut some roles at its Macclesfield site as part of an efficiency drive, which it said would lead to the loss of around 30 positions, although the GMB union claimed the figure was nearer 100.
