29th Apr 2020 08:39
(Alliance News) - AstraZeneca PLC on Wednesday said profit increased sharply in the first quarter of the year as revenue rose across all of its therapy areas and all markets.
The FTSE 100-listed pharmaceutical firm reported a USD935 million pretax profit for the three months ended March 31, a 23% rise from USD758 million the year before.
Core earnings per share rose 17% to USD1.05, up 21% at constant currency.
Revenue was 16% higher at USD6.35 billion from USD5.49 billion with Oncology revenue up 33% at USD2.52 billion, New Cardiovascular, Renal & Metabolism revenue up 7% at USD1.10 billion, and Respiratory & Immunology revenue 21% higher at USD1.56 billion.
This revenue growth was seen across all regions, with Emerging Markets revenue up 13%, China revenue up 14%, and US revenue 16% higher, while revenue in Europe grew 22% and was up 10% in Japan.
At constant currency, group revenue grew 17% in the first quarter. Astra estimated a "low-to-mid single-digit percentage benefit" from short-term inventory increases in the distribution channel, longer prescriptions, and improved treatment-regimen adherence - all indirect effects of Covid-19. The benefit is expected to reverse in the coming months, it added.
Chief Executive Pascal Soriot said: "Our focus ensured another quarter of strong growth across every therapy area and region. The new medicines performed extremely well, and our pipeline continued to deliver. Standouts included landmark news for Tagrisso, Farxiga and Koselugo, our latest oncology medicine. The progress made on all fronts provides confidence that we will, once again, meet our full-year commitments."
The Tagrisso news was that cancer drug Tagrisso could be potentially used to treat epidermal growth factor receptor mutation-positive lung cancer, while heart failure drug Farixga has potential in chronic kidney disease. Koselugo has been approved in the US to treat inoperable plexiform neurofibromas.
"I could not be prouder of how the AstraZeneca team has responded to the challenges of Covid-19. We moved quickly to maintain continuity of care, contribute to society, and use our scientific expertise to fight the pandemic. We hope our efforts to protect organs from damage, mitigate the cytokine storm and the associated hyperinflammatory state, and target the virus prove to be successful," said Soriot.
Astra is currently evaluating the use of its drug Calquence, already approved in some counties to treat chronic lymphocytic leukaemia, in Covid-19. The phase 2 Calavi trial of Calquence will assess the drug's ability to suppress "the cytokine storm that inflames the lungs and other organs of some Covid-19 patients".
Furthermore, the firm is also looking into whether Fraixga could possibly reduce organ failure in Covid-19. A phase 3 trial, Dare-19, is currently taking place.
The company maintained its financial guidance for 2020, still expecting revenue to rise "by a high single-digit to a low double-digit percentage" while core earnings per share is set "to increase by a mid- to high-teens percentage". Astra said it "recognises the heightened risks and uncertainties from the impact of Covid-19".
Shares in Astra were up 1.3% at 8,292.00 pence in London on Wednesday morning.
By Anna Farley; [email protected]
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