AstraZeneca lifts revenue guidance on COVID treatment

The brand for AstraZeneca is seen exterior its North America headquarters in Wilmington, Delaware, U.S., March 22, 2021. REUTERS/Rachel Wisniewski/File Photograph GLOBAL BUSINESS WEEK AHEAD

July 29 (Reuters) – AstraZeneca (AZN.L) stated it anticipated prescriptions of its COVID remedy to drive gross sales progress of greater than 20% this 12 months, as firm reported second-quarter revenue that topped analyst estimates.

The injection, referred to as Evusheld, which is designed to guard towards COVID an infection for at the least six months, has been deployed in lots of nations for folks with compromised immune programs who see little or no profit from vaccines.

The long-acting antibody remedy, launched in December final 12 months, generated gross sales of $445 million within the quarter.

“Actual-world proof has proven that 30% to 40% of COVID hospitalisations are in immunocompromised sufferers, so there’s a actual want for Evusheld proper now,” finance chief Aradhana Sarin informed Reuters.

The London-listed firm elevated its full-year income steerage, saying it expects it to rise by a share within the “low twenties” moderately than the “excessive teenagers” forecast beforehand.

It saved its forecast for a achieve in adjusted earnings per share within the “mid-to-high twenties share” unchanged, partly due to an even bigger price range for drug analysis and growth and for the advertising and marketing and distribution of Evusheld.

The corporate additionally felt the influence of inflation with distribution prices like freight charges up by extra that 30%, CFO Sarin stated in a media briefing.

Analysts at brokerages Jefferies and JPMorgan stated traders had been unlikely to be impressed by the earnings outlook and its shares fell as a lot as 3.1% and had been down 2% at 0930 GMT, underperforming the STOXX Europe 600 Well being Care (.SXDP) index that slipped 0.3%.

Second-quarter adjusted earnings nearly doubled to $1.72 cents per share for the three months ended June 30, on income of about $10.8 billion, up 31%. Analysts on common anticipated revenue of $1.56 cents per share on income of round $10.5 billion, Refinitiv knowledge confirmed.

On Friday, the corporate additionally stated Michel Demaré will take over from non-executive Chairman Leif Johansson when he retires subsequent 12 months. Demaré at the moment serves because the chair of AstraZeneca’s remuneration committee.

Johansson turned chairman in 2012, across the identical time as Frenchman Pascal Soriot took cost as chief government.

The transfer guidelines out Soriot, who fended off a takeover method from Pfizer in 2014, as a md candidate.

As previous chairman of Syngenta, Demaré in 2015 led the Swiss crop chemical substances maker’s profitable defence towards an undesirable takeover method from U.S. rival Monsanto, which resulted within the agreed acquisition of Syngenta by ChemChina.

AstraZeneca stated it expects rising gross sales of Evusheld to offset a decline in gross sales of its COVID-19 vaccine Vaxzevria, developed with Oxford College, within the face of rising competitors. learn extra

The corporate beforehand anticipated Evusheld progress wouldn’t make up for the decline in Vaxzevria gross sales.

Gross sales in key market China, which accounted for near fifth of gross sales final 12 months, slipped 6% to $1.44 billion on decrease costs and as COVID lockdown measures saved some sufferers from searching for most cancers care.

Astra’s best-selling product Tagrisso towards lung most cancers had a quarterly enhance in revenues of seven% to $1.4 billion, whereas gross sales of cardiovascular and diabetes remedy Farxiga jumped 51% to $1.1 billion within the quarter, each barely forward of market expectations.

Reporting by Natalie Grover in London and Ludwig Burger in Frankfurt; enhancing by David Goodman, Jason Neely, David Evans, Barbara Lewis and Jane Merriman

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