AstraZeneca Expects Strong Profit as Demand Gets High for Cancer and Rare Disease Drugs
By Thea Felicity
Jul 25, 2024 10:50 AM EDT
A general view taken on February 8, 2022 shows the AstraZeneca facility for biological medicines in Södertälje, south of Stockholm, Sweden. - AstraZenecas new facility in Sweden located in Södertälje was inaugurated last December and is dedicated to the production of next generation biological drugs such as Evusheld, a Covid-19 preventative monoclonal antibody treatment for immunocompromised people. (Photo : JONATHAN NACKSTRAND/AFP via Getty Images)
AstraZeneca has raised its full-year sales and profit forecast as strong demand thrives for its cancer, rare disease, and heart disease drugs.
Reuters shared that the company's second-quarter revenue exceeded analyst expectations, leading to an optimistic outlook for the remainder of the year. Sales in its top business, oncology, grew by 19% at constant currency rates, totaling $5.33 billion and making up 41% of the company's total revenue.
At the same time, the rare disease and heart and kidney disease divisions each reported double-digit growth.
Despite these gains, AstraZeneca's second-quarter profit was impacted by rising expenses and slightly softer-than-expected sales of its cancer drugs, Enhertu and Imfinzi. As a result, the company's shares slipped by as much as 4%, ultimately closing down 2.4% on Thursday.
For the entirety of 2024, AstraZeneca is now predicting that both its revenue and core earnings per share will grow by a percentage in the mid-teens (e.g., around 15%) at constant currency rates, which is more optimistic than their previous estimate that only anticipated a lower growth rate in the low double-digit to low-teens range (e.g., 10-12%).
The company, valued at 189.4 billion pounds ($243.89 billion), has evolved under CEO Pascal Soriot's leadership over the past 12 years.
AstraZeneca's sales outlook now reflects a shift beyond its COVID-19 vaccine, focusing instead on a strong roster of cancer therapies and a promising pipeline of new treatments. VCPost earlier reported that they are also expanding internationally, with a new drug manufacturing plant in Singapore, while also investing in building its pipeline and marketing new launches, including establishing a local supply chain in China to serve its second-largest market globally
CEO Pascal Soriot emphasized the company's progress with disruptive technologies that have the potential to drive growth beyond 2030. By 2030, AstraZeneca announced plans to grow revenue by about 75% to $80 billion, supported by the launch of 20 new medicines and growth in its cancer, biopharmaceuticals, and rare disease portfolios.
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