28th Jul 2023 08:51
(Alliance News) - AstraZeneca PLC on Friday reported half-year profit more than quintupling amid much lower costs, as its rare disease focused unit Alexion signed an agreement with Pfizer.
The Cambridge-based pharmaceutical company said that, in the first half of 2023, pretax profit jumped to USD4.35 billion from USD800 million a year prior. This was on the back of significantly lower cost of sales, down 41% to USD3.87 billion from USD6.51 billion.
Astra maintained an interim dividend of USD0.93 per share.
Chief Executive Officer Pascal Soriot said: "Each of our non-Covid-19 therapy areas saw double-digit revenue growth, with eight medicines delivering more than USD1 billion of revenue in the first half, demonstrating the strength of our business. Several medicines grew rapidly including Ultomiris, Imfinzi/Imjudo and Farxiga, with revenues up 64%, 57% and 40% respectively."
As AstraZeneca's non-Covid business booms, the Covid arm is set to further decline "significantly" during 2023, with lower revenue from its Vaxzevria and Covid-19 mAbs medicines.
Looking ahead, AstraZeneca confirmed its 2023 guidance at constant exchange rates, expecting revenue to increase by a low-to-mid single-digit percentage in 2023.
Further, AstraZeneca announced that Mene Pangalos in early 2024 will step down from her role as executive vice president of the company's BioPharmaceuticals research & development arm after spending almost 14 years with the company. Sharon Barr will replace her. Barr has been senior vice president, head of research & product development of AstraZeneca's rare diseases-focused Alexion since 2013.
Meanwhile, Alexion signed an agreement with Pfizer Inc to buy a portfolio of preclinical rare disease gene therapies for up to USD1 billion. It expects the transaction to close in the third quarter of 2023.
"The agreement furthers Alexion and AstraZeneca's commitment to advancing next-generation genomic medicines with the addition of complementary pipeline assets and innovative technologies," AstraZeneca said.
AstraZeneca shares rose 3.7% to 11,096.99 each on Friday morning in London.
By Tom Budszus, Alliance News reporter
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