9M and Q3 2023 results

AstraZeneca

9 November 2023

9M and Q3 2023 results

Strong momentum in the year to date leads to increased guidance for Total Revenue ex COVID-19 medicines and Core EPS

Revenue and EPS summary

Financial performance (9M 2023 figures unless otherwise stated, growthnumbers at CER)

‒    Total Revenue $33,787m, up 5% despite a decline of $2,896m from COVID-19 medicines

‒    Excluding COVID-19 medicines, both Total Revenue and Product Sales increased 15%

‒    Total Revenue from Oncology medicines increased 20%, CVRM 19%, R&I 9%, and Rare Disease 12%

‒    Core Product Sales Gross Margin of 82%, up two percentage points, reflecting the decline in sales of lower margin COVID‑19 medicines

‒    Core Operating Margin of 35% increased by three percentage points including the previously-announced gain from an update to the contractual relationships for Beyfortus, totalling $712m and recorded in Core Other operating income

‒    Core EPS increased 17% to $5.80

‒    FY 2023 Total Revenue excluding COVID-19 medicines now expected to increase by a low-teens percentage at CER

‒    FY 2023 Core EPS now expected to increase by a low double-digit to low-teens percentage at CER

Pascal Soriot, Chief Executive Officer, AstraZeneca, said:

"Our company continued its strong growth trajectory in the third quarter with Total Revenue from our non‑COVID-19 medicines up 13% compared to last year.

We initiated several Phase III trials of high-potential molecules this quarter, including for volrustomig, our PD‑1/CTLA-4 bispecific antibody. Our portfolio of bispecifics has the potential to replace the first-generation checkpoint inhibitors across a range of cancers. We also initiated a fixed dose combination study of zibotentan with Farxiga which has the potential to significantly improve outcomes for patients with kidney disease not well controlled on current standard of care.

I am excited about the acceleration of our cardiometabolic and obesity pipeline with today's licensing agreement for ECC5004, a potential best-in-class, oral GLP-1RA. This molecule could offer an important advance, as both a monotherapy and in combinations, for the estimated one billion people living with cardiometabolic diseases such as type-2 diabetes and obesity.

Given the momentum in the year to date we have increased our full-year guidance for Total Revenue excluding COVID medicines as well as for Core EPS." 

Key milestones achieved since the prior results announcement

‒    Key positive read-outs: datopotamab deruxtecan in metastatic HR-positive breast cancer (TROPION‑Breast01); Imfinzi in liver cancer (EMERALD-1); Fasenra in EGPA (MANDARA)   

‒    Key regulatory approvals: EU approval for Enhertu in HER2-mutant lung cancer (DESTINY‑Lung02); China approvals for Forxiga in heart failure regardless of ejection fraction (DELIVER); Calquence in r/rCLL (ASCEND); Soliris in NMOSD. Japan approvals for Lynparza in prostate cancer (PROpel); Enhertu in HER2-mutant lung cancer (DESTINY-Lung02)

‒    Other milestones: Tagrisso granted US Breakthrough Therapy Designation and US Priority Review in combination with chemotherapy for treatment of patients with locally advanced or metastatic EGFRm NSCLC (FLAURA2); Enhertu granted US Breakthrough Therapy Designations in HER2-positive colorectal
cancer (DESTINY-CRC01, DESTINY-CRC02) and multiple types of HER2‑expressing tumours (DESTINY‑PanTumor02)

Please refer to the attached PDF document to view the full announcement.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.