Very strong revenue and EPS growth in the first
quarter coupled with exciting pipeline delivery
AstraZeneca:
Revenue and EPS summary
Q1 2024
% Change
$m
Actual
CER1
- Product Sales
12,177
15
18
- Alliance Revenue
457
59
59
- Collaboration Revenue
45
66
66
Total Revenue
12,679
17
19
Reported EPS
$1.41
21
30
Core2 EPS
$2.06
7
13
Financial performance for Q1 2024 (Growth numbers at
CER)
- Total Revenue up 19% to $12,679m, driven by an 18% increase in
Product Sales and continued growth in Alliance Revenue from
partnered medicines
- Double-digit growth in Total Revenue from Oncology at 26%, CVRM
at 23%, R&I at 17%, and Rare Disease at 16%
- Core Product Sales Gross Margin3 of 82%
- Core Operating Margin of 34%
- Core Tax Rate of 21%
- Core EPS increased 13% to $2.06. The increase in Core EPS was
lower than Total Revenue growth principally due to a $241m gain in
the prior year period on the disposal of Pulmicort Flexhaler US
rights
- As announced at the Annual General Meeting on 11 April 2024,
the total dividend for FY 2024 will increase by $0.20 per share to
$3.10 per share
- Total Revenue and Core EPS guidance at CER for FY 2024
reiterated
Pascal Soriot, Chief Executive Officer, AstraZeneca,
said:
"AstraZeneca had a very strong start in 2024 with substantial
Total Revenue growth of 19% in the first quarter.
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.
At our Annual General Meeting we were pleased to announce a 7%
increase in the annual dividend, and at our Investor Day on 21 May
2024 we will outline the evolution of our company, underscoring our
confidence in sustaining industry-leading growth."
Key milestones achieved since the prior results
announcement
- Positive read-outs for Tagrisso in unresectable, Stage III
EGFRm NSCLC (LAURA), Imfinzi in LS-SCLC (ADRIATIC)
- US approvals for Tagrisso with the addition of chemotherapy for
EGFRm NSCLC (FLAURA2), Enhertu in HER2-positive solid tumours
(DESTINY-PanTumor02, DESTINY-Lung01, DESTINY-CRC02) and Ultomiris
for NMOSD. US and EU approval for Voydeya as an add-on therapy to
Ultomiris or Soliris for PNH with EVH (ALPHA). Japan approval for
Truqap plus Faslodex in unresectable or recurrent PIK3CA-, AKT1-,
or PTEN-altered HR-positive, HER2-negative breast cancer
(CAPItello-291)
- Datopotamab deruxtecan BLAs accepted in the US for non-squamous
NSCLC (TROPION-Lung01) and HR-positive, HER2-negative breast cancer
(TROPION-Breast01)
Guidance
The Company reiterates its Total Revenue and Core EPS guidance
for FY 2024 at CER, based on the average foreign exchange rates
through 2023.
Total Revenue is expected to increase by a low
double-digit to low teens percentage
Core EPS is expected to increase by a low
double-digit to low teens percentage
- Collaboration Revenue is expected to increase substantially,
driven by success-based milestones and certain anticipated
transactions
- Other operating income is expected to decrease substantially
(FY 2023 included a $241m gain on the disposal of Pulmicort
Flexhaler US rights, and a $712m one-time gain relating to updates
to contractual arrangements for Beyfortus)
- The Core Tax rate is expected to be between 18-22%
The Company is unable to provide guidance on a Reported basis
because it cannot reliably forecast material elements of the
Reported results, including any fair value adjustments arising on
acquisition-related liabilities, intangible asset impairment
charges and legal settlement provisions. Please refer to the
cautionary statements section regarding forward-looking statements
at the end of this announcement.
Currency impact
If foreign exchange rates for April 2024 to December 2024 were
to remain at the average rates seen in March 2024, compared to the
performance at CER it is anticipated that FY 2024 Total Revenue
would incur a low single-digit adverse impact and Core EPS would
incur a mid single-digit adverse impact (previously low
single-digit). The Company's foreign exchange rate sensitivity
analysis is provided in Table 16.
Investor Day
AstraZeneca will host an Investor Day on 21 May 2024. For more
information, see www.astrazeneca.com/investor-relations.html.
Table 1: Key elements of Total Revenue performance in Q1
2024
% Change
Revenue type
$m
Actual %
CER %
Product Sales
12,177
15
18
Alliance Revenue
457
59
59
* $339m Enhertu (Q1 2023: $220m) * $77m
Tezspire (Q1 2023: $43m)
Collaboration Revenue
45
66
66
* $45m Farxiga (Q1 2023: $24m)
Total Revenue
12,679
17
19
Therapy areas
$m
Actual %
CER %
Oncology
5,108
23
26
* Strong performance across all key
medicines and regions
CVRM
3,060
20
23
* Farxiga up 43% (45% at CER) with
continued demand growth and the launch of an authorised generic in
the US, Lokelma up 16% (19% at CER), roxadustat up 24% (28% at
CER), Brilinta decreased 3% (1% at CER)
R&I
1,886
15
17
* Continued strong growth from Fasenra up
6% (6% CER), Breztri up 52% (54% CER). Saphnelo up 94% (95% CER)
and Tezspire up >2x (>2x CER). Symbicort was up 12% (14%
CER)
V&I
232
(35
)
(34
)
* Beyfortus revenue was $46m (Q1 2023:
$nil), which more than offset a $27m decline in Synagis * The drop
in V&I revenue was driven by lower sales of COVID-19 mAbs and
Vaxzevria. Vaxzevria revenues are now included in the 'Other'
V&I line
Rare Disease
2,096
12
16
* Ultomiris up 32% (34% at CER), partially
offset by decline in Soliris of 11% (8% at CER) * Strensiq up 20%
(21% at CER) and Koselugo up 68% (82% at CER) reflecting strong
patient demand, and also tender market order timing
Other Medicines
297
(7
)
-
Total Revenue
12,679
17
19
Regions
$m
Actual %
CER %
US
5,124
19
19
Emerging Markets
3,732
18
26
- China
1,748
9
13
- Ex-China Emerging Markets
1,984
27
40
Europe
2,634
22
19
Established RoW
1,189
(5
)
2
* Decline in COVID-19 mAbs revenue
Total Revenue
12,679
17
19
Combined sales of Enhertu, recorded by Daiichi Sankyo Company
Limited (Daiichi Sankyo) and AstraZeneca, amounted to $879m in Q1
2024 (Q1 2023: $531m).
Combined sales of Tezspire, recorded by Amgen and AstraZeneca,
amounted to $216m in Q1 2024 (Q1 2023: $105m).
Table 2: Key elements of financial performance in Q1
2024
Metric
Reported
Reported change
Core
Core change
Comments4
Total Revenue
$12,679m
17% Actual 19% CER
$12,679m
17% Actual 19% CER
* See Table 1 and the Total Revenue
section of this document for further details
Product Sales Gross Margin
82%
Stable
82%
-1pp Actual -1pp CER
* Variations in Product Sales Gross Margin
can be expected between periods due to product seasonality, foreign
exchange fluctuations and other effects
R&D expense
$2,783m
7% Actual 7% CER
$2,698m
17% Actual 18% CER
+ Increased investment in the pipeline
* Core R&D-to-Total Revenue ratio of
21% (Q1 2023: 21%)
SG&A expense
$4,495m
11% Actual 12% CER
$3,413m
12% Actual 13% CER
+ Market development for recent launches
and pre-launch activities
* Core SG&A-to-Total Revenue ratio of
27% (Q1 2023: 28%)
Other operating income and
expense5
$67m
-83% Actual -83% CER
$65m
-80% Actual -80% CER
‒ The prior year quarter included a $241m
gain on the disposal of Pulmicort Flexhaler US rights
Operating Margin
25%
+1pp Actual +2pp CER
34%
-2pp Actual -1pp CER
* See commentary above on Other operating
income and expense
Net finance expense
$302m
5% Actual 1% CER
$245m
2% Actual -3% CER
+ Higher rates on floating debt and bond
issuances
‒ Higher interest received on cash and
short-term investments
Tax rate
22%
+2pp Actual +2pp CER
21%
+2pp Actual +2pp CER
* Variations in the tax rate can be
expected between periods
EPS
$1.41
21% Actual 30% CER
$2.06
7% Actual 13% CER
* Further details of differences between
Reported and Core are shown in Table 11
Table 3: Pipeline highlights since prior results
announcement
Event
Medicine
Indication / Trial
Event
Regulatory approvals and other
regulatory actions
Enhertu
HER2-expressing tumours
(DESTINY-PanTumor02)
Regulatory approval (US)
Tagrisso
EGFRm NSCLC (1st-line) (FLAURA2)
Regulatory approval (US)
Truqap
HR+/HER2-neg breast cancer (2nd-line)
(CAPItello-291)
Regulatory approval (JP)
Beyfortus
RSV (MELODY-MEDLEY)
Regulatory approval (JP)
Ultomiris
NMOSD (CHAMPION-NMOSD)
Regulatory approval (US)
Voydeya
PNH with EVH (ALPHA)
Regulatory approval (US, EU)
Regulatory submissions or
acceptances*
Dato-DXd
Non-squamous NSCLC (2nd- and 3rd-line)
(TROPION-Lung01)
Regulatory submission (US)
Dato-DXd
HR+/HER2- breast cancer (inoperable and/or
met.) (TROPION-Breast01)
Regulatory submission (US, EU, JP, CN)
acoramidis
ATTR-CM (ALXN2060-TAC-302)
Regulatory submission (JP)
Major Phase III data readouts and
other developments
Tagrisso
EGFRm NSCLC (unresectable Stg.
III) (LAURA)
Primary endpoint met
Imfinzi
SCLC (limited-stage)
(ADRIATIC)
Primary endpoint met
*US, EU and China regulatory submission
denotes filing acceptance
Upcoming pipeline catalysts
For recent trial starts and anticipated timings of key trial
readouts, please refer to the Clinical Trials Appendix, available
on www.astrazeneca.com/investor-relations.html.
Corporate and business development
In February 2024, AstraZeneca completed the acquisition of
Gracell Biotechnologies, Inc. (Gracell), a global clinical-stage
biopharmaceutical company developing innovative cell therapies for
the treatment of cancer and autoimmune diseases. The acquisition
enriches AstraZeneca's growing pipeline of cell therapies with
AZD0120 (formerly GC012F), a novel, clinical-stage T-cell (CAR-T)
therapy. AZD0120 is a potential new treatment for multiple myeloma,
as well as other haematologic malignancies and autoimmune diseases,
including SLE. The upfront cash portion of the consideration was
approximately $1.0 billion. Combined, the upfront and potential
contingent value payments represent, if achieved, a transaction
value of approximately $1.2 billion. AstraZeneca acquired the cash
and cash equivalents on Gracell's balance sheet, which totalled
$209 million at the close of the transaction.
In February 2024, AstraZeneca completed the acquisition of
Icosavax, Inc., a US-based clinical-stage biopharmaceutical company
focused on developing differentiated, high-potential vaccines using
an innovative, protein virus-like particle platform. The upfront
cash portion of the consideration was approximately $0.8 billion.
Combined, the upfront and maximum potential contingent value
payments represent, if achieved, a transaction value of
approximately $1.1 billion. AstraZeneca acquired the cash, cash
equivalents and marketable securities on Icosavax's balance sheet,
which totalled $192 million at the close of the transaction.
In March 2024, AstraZeneca announced that it has entered into a
definitive agreement to acquire Amolyt Pharma, a clinical-stage
biotechnology company focused on developing novel treatments for
rare endocrine diseases. The proposed acquisition will bolster the
Rare Disease late-stage pipeline and expand on its bone metabolism
franchise with the notable addition of eneboparatide (AZP-3601), a
Phase III investigational therapeutic peptide with a novel
mechanism of action designed to meet key therapeutic goals for
hypoparathyroidism. The upfront cash portion of the consideration
is $0.8 billion at deal closing. Combined, the upfront and maximum
potential contingent value payments represent, if achieved, a
transaction value of $1.05 billion. AstraZeneca will acquire all of
Amolyt Pharma's outstanding shares on a cash and debt free basis.
Subject to the satisfaction of customary closing conditions in the
acquisition agreement, including regulatory clearances, the
transaction is expected to close by the end of the third quarter of
2024.
In March 2024, AstraZeneca entered into a definitive agreement
to acquire Fusion Pharmaceuticals Inc., a clinical-stage
biopharmaceutical company developing next-generation
radioconjugates. This complements AstraZeneca's leading oncology
portfolio with the addition of the Fusion pipeline of RCs,
including their most advanced programme, FPI-2265, a potential new
treatment for patients with mCRPC. The acquisition marks a major
step forward in AstraZeneca delivering on its ambition to transform
cancer treatment and outcomes for patients by replacing traditional
regimens like chemotherapy and radiotherapy with more targeted
treatments. The upfront cash portion of the consideration is
approximately $2 billion. Combined, the upfront and maximum
potential contingent value payments represent, if achieved, a
transaction value of approximately $2.4 billion. AstraZeneca will
acquire the cash, cash equivalents and short term investments on
Fusion's balance sheet, which totalled $234 million as of 31
December 2023. The transaction is expected to close in the second
quarter of 2024, subject to customary closing conditions, including
the approval of Fusion shareholders and regulatory clearances.
Sustainability highlights
Our newly announced collaboration with China Resources Gas and
Everbright Environment will supply biomethane and biomethane-based
steam to our Wuxi site. Using domestic waste, including food and
plant waste, this new partnership will enable us to reduce our
greenhouse gas emissions footprint by 80% in China.
AstraZeneca announced at WEF that it will be one of the
inaugural Early Adopter organisations that intend to start making
disclosures aligned with the Taskforce on Nature-related Financial
Disclosures Recommendations in corporate reporting.
AstraZeneca also hosted an annual Sustainability call for
shareholders, reiterating its continued commitment to deliver
across our pillars; Access to Healthcare, Environmental Protection
and Ethics and Transparency. A recording of the call and
accompanying materials are available on the AstraZeneca IR
website.
Conference call
A conference call and webcast for investors and analysts will
begin today, 25 April 2024, at 11:45 UK time. Details can be
accessed via astrazeneca.com.
Reporting calendar
The Company intends to publish its H1 and Q2 2024 results on 25
July 2024.
To read AstraZeneca's Q1 2024 Financial Results press release in
full including the glossary, please click here.
_______________________________
1
Constant exchange rates. The differences
between Actual Change and CER Change are due to foreign exchange
movements between periods in 2024 vs. 2023. CER financial measures
are not accounted for according to generally accepted accounting
principles (GAAP) because they remove the effects of currency
movements from Reported results.
2
Core financial measures are adjusted to
exclude certain items. The differences between Reported and Core
measures are primarily due to costs relating to the amortisation of
intangibles, impairments, legal settlements and restructuring
charges. A full reconciliation between Reported EPS and Core EPS is
provided in Table 11 in the Financial performance section of this
document.
3
The calculation of Reported and Core
Product Sales Gross Margin excludes the impact of Alliance Revenue
and Collaboration Revenue.
4
In Table 2, the plus and minus symbols
denote the directional impact of the item being discussed, e.g. a
‘+’ symbol next to a comment related to the R&D expense
indicates that the item resulted in an increase in the R&D
spend relative to the prior year.
5
Income from disposals of assets and
businesses, where the Group does not retain a significant ongoing
economic interest, continue to be recorded in Other operating
income and expense in the Company’s financial statements.
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Global Media Relations team global-mediateam@astrazeneca.com +44
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