Drugs giant in good health, despite $3.7bn decline in COVID-19 medication
AstraZeneca, the global pharmaceuticals group, reported better annual revenues and profits, despite a $3.736bn decline in the sales of its COVID-19 medication.
The group employs around 4,700 people in the North West on sites at Macclesfield and Alderley Park in Cheshire and Speke on Merseyside.
Its 2023 turnover grew by six per cent, on a constant exchange rate (CER) basis, to $45.811bn, while pre-tax profits jumped from $2.501bn in 2022 to $6.899bn.
Excluding COVID-19 medicines, total revenue increased 15% and product sales increased 14%.
Core Product Sales Gross Margin of 82% were up two percentage points, reflecting the decline in sales of lower margin COVID‑19 medicines.
A second interim dividend has been declared of $1.97 per share, making a total dividend declared for the full year, 2023, of $2.90 per share.
Chief executive, Pascal Soriot, said: “As AstraZeneca celebrates its 25th anniversary, we are pleased to report another year of strong financial performance and scientific progress, with double-digit earnings growth, and investment in exciting areas of science, including antibody drug conjugates and cell therapies, that lay the foundations for long-term success.
“We expect another year of strong growth in 2024, driven by continued adoption of our medicines across geographies.”
He added: “Our differentiated and growing portfolio of approved medicines, global reach and rich R&D pipeline give us confidence that we will continue to deliver industry-leading growth.”
The company has also issued its Total Revenue and Core EPS guidance for the current 2024 financial year at CER, based on the average foreign exchange rates through 2023.
It said Total Revenue is expected to increase by a low double-digit to low teens percentage, while Core EPS is expected to increase by a low double-digit to low teens percentage.
Russ Mould, investment director at AJ Bell, said: “Many investors view AstraZeneca as invincible given its success in recent years, yet its latest results showed that even the mighty can disappoint.
“The drugs giant missed fourth quarter earnings expectations due to more money being spent on research and development and a greater contribution from lower-margin sales in emerging markets. However, the business remains optimistic about the prospects for its cancer and rare disease drugs.
“Pharmaceutical companies typically prosper from having a mixture of blockbuster products, treatments with limited or no competition, and a healthy pipeline of new drugs. AstraZeneca is under constant pressure to keep driving growth and that means success in the laboratory as well as products already on the market. AstraZeneca’s pipeline looks busy, but success is never guaranteed.”
