First quarter 2022 results

AstraZeneca PLC
29 April 2022 07:00 GMT

First quarter 2022 results

 Strong start to the year. Continued investment in the pipeline to drive sustainable long-term growth.

Revenue and EPS summary

Financial performance (growth numbers at CER)

‒    Total Revenue increased 60% to $11,390m, reflecting growth across the Company, the contribution of the Alexion medicines and several Vaxzevria contracts that are expected to complete delivery by half year 2022

‒    Total Revenue from Oncology increased 25%⁷, including a milestone payment; Product Sales from Oncology increased 18%. Total Revenue from CVRM⁸ increased 18%, R&I⁹ increased 4% and Rare Disease increased 7%¹⁰

‒    Operating Margin in the quarter benefitted from phasing of costs

‒    Core EPS increased 20% to $1.89

‒    FY 2022 guidance at CER reiterated

Key milestones achieved since the prior results

‒    Key data: Enhertu¹¹ in HER2¹²-low breast cancer (DESTINY-Breast04), AZD8233 in hypercholesterolaemia (ETESIAN, Phase IIb) and publication of data for Lynparza in prostate cancer (PROpel) and nirsevimab in RSV¹³ (MELODY/MEDLEY)

‒    Key approvals: Saphnelo and Evusheld in the EU, Ondexxya in Japan, and in the US, approvals of Ultomiris for gMG¹⁴ and Lynparza¹⁵ for early breast cancer (OlympiA)

‒    Other key milestones: US FDA¹⁶ Breakthrough Therapy Designation for Enhertu in HER2-low breast cancer (DESTINY-Breast04), Priority Reviews for Enhertu in HER2-mutant metastatic non-small cell lung cancer (DESTINY-Lung01), and Imfinzi and tremelimumab in advanced liver cancer (HIMALAYA), and EMA¹⁷ accelerated assessment for nirsevimab in RSV (MELODY/MEDLEY)

Pascal Soriot, Chief Executive Officer, AstraZeneca, said:

"2022 has started strongly for AstraZeneca. Farxiga achieved $1bn revenue in the quarter and our Oncology medicines delivered Product Sales growth of 18%, despite COVID-19 continuing to impact cancer diagnosis and treatment. High-level results from the DESTINY-Breast04 trial pointed to Enhertu's potential to redefine treatment of HER2‑low metastatic breast cancer, and Ultomiris became the first and only long-acting C5 inhibitor approved for generalised myasthenia gravis in the US.

Today we have unveiled plans for a new strategic research and development centre in the heart of Cambridge, Massachusetts' scientific hub. In line with our sustainability commitments, it will be designed to the highest environmental standards. Our investments in pioneering science give us confidence of further advances in the years to come."  

Guidance

The Company reiterates FY 2022 guidance at CER.

Total Revenue is expected to increase by a high teens percentage

Core EPS is expected to increase by a mid-to-high twenties percentage

‒    The CER growth rates include the full-year contribution of Vaxzevria in both FY 2021 and FY 2022

‒    Total Revenue from COVID-19 medicines is anticipated to decline by a low-to-mid twenties percentage, with an expected decline in sales of Vaxzevria being partially offset by growth in Evusheld sales. The majority of Vaxzevria revenue in 2022 is expected to come from initial contracts. The Gross Margin from the COVID-19 medicines is expected to be lower than the Company average

‒    Core Operating Expenses are expected to increase by a low-to-mid teens percentage, driven in substantial part by the full year integration of Alexion expenses

‒    Emerging Markets Total Revenue, including China, is expected to grow mid-single-digits in FY 2022. China Total Revenue is expected to decline by a mid-single-digit percentage in FY 2022, primarily due to continued NRDL and VBP programme impacting various medicines. The Company remains confident in the longer term outlook for Emerging Markets, driven by a large market opportunity, broader patient access and an increased mix of new medicines

‒    A Core Tax Rate between 18-22%

AstraZeneca continues to recognise and actively manage the heightened risks from COVID-19 and geopolitical and supply chain uncertainties on overall business performance. Variations in performance between quarters can be expected to continue.

The Company is unable to provide guidance on a Reported basis because AstraZeneca cannot reliably forecast material elements of the Reported result, 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.

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