25th Apr 2024 13:00
(Alliance News) - AstraZeneca PLC passed its first quarter health check with "flying colours," analysts on Thursday said after delivering an impressive financial performance.
Shares in AstraZeneca rose 5.3% to 11,956.00 pence in London on Thursday.
The Cambridge, UK-based pharmaceuticals manufacturer reported pretax profit jumped 24% in the first three months of 2024 to USD2.80 billion from USD2.26 billion a year prior. Earnings per share climbed 21% to USD1.41 from USD1.16.
Revenue rose 17% to USD12.68 billion from USD10.88 billion a year earlier.
AstraZeneca highlighted double-digit revenue growth from Oncology at 26% to USD5.11 billion, Cardiovascular, Renal and Metabolism at 23% to USD3.06 billion, Respiratory and Immunology at 17% to USD1.89 billion, and Rare Disease at 16% to USD2.10 billion.
In Oncology, the company reported strong performance across all key medicines and regions. Sales of lung cancer treatments Tagrisso rose 13% to USD1.60 billion, and Imfinzi by 9% to USD1.11 billion.
Combined sales of cancer treatment Enhertu, recorded by Daiichi Sankyo Co Ltd, and AstraZeneca, amounted to USD879 million, up from USD531 million last year, it said.
In CVRM, sales of the type 2 diabetes treatment Farxiga increased by 43% to USD1.89 billion.
In Rare Diseases, Ultomiris sales rose 7% to USD859 million.
Chief Executive Pascal Soriot said: "Our strong pipeline momentum continued and already this year we announced positive trial results for Imfinzi and Tagrisso that were unprecedented in lung cancer, the data from both of these studies will be presented during the ASCO plenary in June. We are also looking forward to seeing the results of several other important trials throughout the year."
AstraZeneca reiterated its revenue and core EPS guidance for 2024.
Analysts at Citi said the update was "the strongest quarter [AstraZeneca] has posted in recent memory with broad beats even after accounting for the USD100 million from one time Farxiga contributions."
Citi felt the only disappointment was the lack of the guidance upgrade but it anticipates this will "almost certainly come later in the year."
Derren Nathan, head of equity research, Hargreaves Lansdown said the firm has passed its "first quarter health check with flying colours."
Its drive to roll out next-generation cancer therapies is powering both revenue growth and clinical success, he noted.
Nathan also highlighted some strong performances in certain areas of other chronic and rare diseases.
US rights research & development investment remains high but that’s certainly bearing fruit, he pointed out, and "with six Phase III trials initiated since the year end, there could be more to come."
"Of course, there’s a high likelihood that they won’t all lead to new revenue streams, but the company’s record of success is impressive," he noted.
"Pascal Soriot may have come under some fire later for his multi-million pay package, but for now there’s little faulting the direction of travel on which he has set AstraZeneca," he said.
By Jeremy Cutler, Alliance News reporter
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