30th Apr 2021 08:19
(Alliance News) - AstraZeneca PLC on Friday posted a sharp first quarter earnings hike and backed its annual guidance.
Shares in the company were 2.8% higher at 7,601.00 pence each in London on Friday morning, the best blue-chip performer.
The pharmaceutical firm generated USD275 million from sales of its Covid-19 vaccine. The jab's use has been restricted by age in many countries over links to rare blood clots - with this also listed as a side effect for the Johnson & Johnson Covid-19 vaccine - but regulatory agencies have stressed that the benefits outweigh the risks.
AstraZeneca's revenue in the first quarter of 2021 jumped 15% to USD7.32 billion from USD6.35 billion a year earlier. Pretax profit climbed 72% to USD1.61 billion from USD935 million.
"We delivered solid progress in the first quarter of 2021 and continued to advance our portfolio of life-changing medicines. Oncology grew 16% and New CVRM grew 15%. New medicines contributed over half of revenue and all regions delivered encouraging growth. This performance ensured another quarter of strong revenue and earnings progression, continued profitability, and cash-flow generation, despite the pandemic's ongoing negative impact on the diagnosis and treatment of many conditions," Chief Executive Pascal Soriot said.
"Given the performance in the first quarter, in line with our expectations, we reiterate our full-year guidance. We expect the impact of COVID to reduce and anticipate a performance acceleration in the second half of 2021."
For the whole of 2021, it expects total revenue to grow "by a low-teens percentage" at constant currency.
The forecast does not include the contribution of soon-to-be acquired Alexion Pharmaceuticals Inc, or Astra's Covid-19 jab.
Earlier in April, the USD39 billion Alexion deal was given the go-ahead by the US Federal Trade Commission
On Monday, the EU launched legal action against Astra over delivery shortfalls of the virus jab.
"The commission has started last Friday a legal action against the company AstraZeneca on the basis of breaches of the advanced purchase agreement," EU spokesman Stefan De Keersmaecker said, adding the action was launched on behalf of the 27 member states.
In response, Astra said the action was "without merit".
By Eric Cunha; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Astrazeneca