- AstraZeneca’s total sales rose to £10.2 billion in the first three months of 2024
- Oncology drug revenues increased by nearly $1 billion to $5.1 billion
AstraZeneca’s sales and profits exceeded expectations in the first quarter, following strong demand for its successful oncology drugs.
The pharmaceutical giant saw total sales rise by $1.8 billion at constant exchange rates to $12.7 billion (£10.2 billion) in the first three months of 2024, compared to analyst estimates of $11.8 billion.
Oncology drug revenues rose nearly $1 billion to $5.1 billion, driven by double-digit percentage growth in key drugs including lung cancer treatments Tagrisso and Imfinzi.
Good result: AstraZeneca reported total sales increased by $1.8 billion at constant exchange rates to $12.7 billion (£10.2 billion) in the first three months of 2024
Both drugs were recently the subject of successful trials, the results of which AstraZeneca plans to announce at a plenary meeting in June.
At the same time, sales of its cardiovascular, renal and metabolic drugs rose by about $500 million to more than $3 billion, amid solid demand for type 2 diabetes drug Farxiga.
An authorized generic drug from Farxiga, the company’s best-selling drug, recently launched in the United States.
Thanks to the strong sales performance, AstraZeneca’s core earnings per share reached $2.06, up 12 percent from the same period last year and above expectations of $1.94 per share.
Following the result, the London-based company has maintained its annual guidance for revenue and core earnings per share growth in the low double digits to low teens.
AstraZeneca shares were up 5.9 per cent to £120.20 by lunchtime on Wednesday, making them one of the top gainers on the FTSE 100 Index.
The group’s latest trading update comes two weeks after it unveiled a 7 percent increase in its annual dividend to $3.10 per share.
However, the company faced a revolt over chief executive Pascal Soriot’s compensation package, with a third of shareholders voting against a deal that would earn the French-born boss up to £18.7 million this year.
Soriot will receive a basic salary of £1.5m, plus a bonus and performance-related share awards, taking his total earnings since becoming CEO of AstraZeneca in 2012 to £153m.
During his tenure, AstraZeneca’s market value more than tripled to £186.7 billion thanks to building a blockbuster cancer drug pipeline, backed by high levels of investment and strategic acquisitions.
Just this year, the company agreed to acquire Fusion Pharmaceuticals and Amolyt Pharma and completed the purchase of vaccine developer Icosovax and Chinese cancer therapy company Gracell.
Sheena Berry, a healthcare analyst at Quilter Cheviot, said AstraZeneca was “in a really good place right now, allowing the company to continue to focus on reinvesting in the business.” It has a strong pipeline and solid potential for positive updates.”