Drugs giant raises sales forecasts after strong quarter
Astrazeneca, the Anglo-Swedish pharmaceutical group, announced better sales figures for the third quarter today, and raised its full year product sales forecast.
Year-to-date product sales growth of 13% (17% at constant exchange rates – CER) to $17.315bn included third-quarter product sales of $6.132bn (+16%, +18% at CER).
The third quarter again saw all three therapy areas and every sales region produce encouraging performances.
It revealed the continued performance of new medicines, with sales growth in the quarter of 62% (+64% at CER) to $2.707bn, including new-medicine growth in emerging markets of 85% (90% at CER) to $539m.
Sales growth by therapy area in the quarter revealed Oncology +46% (+48% at CER) to $2.334bn, New CVRM3 +8% (+11% at CER) to $1.113bn and Respiratory +15% (+18% at CER) to $1.319bn.
Sales growth by region in the quarter showed total emerging markets sales grew by 25% (29% at CER) to $2.123bn, with China sales growth of 35% (40% at CER) to $1.283bn, ahead of longer-term trends.
US sales increased by 17% to $2.025bn. Europe sales continued their return to growth, increasing by 1% (4% at CER) to $1.139bn, while Japan sales increased by 31% (27% at CER) to $657m.
Chief executive Pascal Soriot said: “With AstraZeneca growing at pace, our sales guidance has been upgraded for the second consecutive quarter.
“Another strong performance from our new medicines accompanied impressive results in our key markets, most notably in China, the US and Japan.
“The performance reinforces our confidence in delivering sustainable earnings growth.”
He added: “We delivered further positive news for patients. Lynparza demonstrated its potential as a treatment for prostate cancer and as an expanded treatment for ovarian cancer.
“Tagrisso, Imfinzi and PT010 also had positive data, and we delivered breakthrough data in heart failure for Farxiga.
“We are continuing to ensure that we capture the benefits of our growth by balancing reinvesting in our business, delivering on our sustainability commitments, continuing to improve our operating leverage and cash generation.”
Astrazeneca employs around 4,700 people in the North West on sites at Macclesfield and Alderley Park in Cheshire and Speke on Merseyside.
Russ Mould, investment director at Manchester investment platform AJ Bell, said: “It is always nice when results are better than expected for a solid reason, not a lower tax charge or some one-off benefit, but genuine growth.
“That is what’s on display at pharma giant AstraZeneca whose third quarter results see product sales ahead of consensus as its new medicines continue to perform well, with guidance on full-year sales also upgraded. The second quarter in a row which has seen a sales upgrade.
“Rocked by the loss of patents on key drugs, an ailing company took its medicine, revamping its management team, scaling back returns to shareholders and increasing investment in the business.
“The company’s recent financial performance demonstrates the merits of this approach.
“In particular, it has prioritised oncology (cancer treatments) and now four of the company’s top 10 medicines are from this area.
“Cash is the lifeblood of any company, so it is particularly encouraging to see such a strong performance here with the best part of a $1bn inflow in the period after capital expenditure – compared with a $334m outflow a year ago on the same measure.
“This should underpin the firm’s strategy of continuing to invest in its portfolio going forward.”
