Half-year Report
AstraZeneca PLC
29 July 2022 07:00 GMT
H1 2022 results
Strong revenue performance and R&D success enables further investment in the pipeline and new launches
Revenue and EPS summary
| H1 2022 | Q2 2022 | ||||||
| % Change | % Change | ||||||
| $m | Actual | CER[1] | $m | Actual | CER | ||
| - Product Sales | 21,610 | 41 | 47 | 10,630 | 32 | 38 | |
| - Collaboration Revenue | 551 | n/m | n/m | 141 | (20) | (20) | |
| Total Revenue | 22,161 | 43 | 48 | 10,771 | 31 | 37 | |
| Reported[2] EPS[3] | $0.48 | (70) | (66) | $0.23 | (45) | (46) | |
| Core[4] EPS | $3.61 | 43 | 44 | $1.72 | 92 | 89 | |
H1 2022 Financial performance (growthnumbersandcommentary at CER)
‒ Total Revenue increased 48% to $22,161m, with growth coming from all disease areas and from the addition of Alexion
‒ Total Revenue from Oncology increased 22%[5], including receipt of a milestone payment. Product Sales from Oncology increased 18%. Total Revenue from R&I[6] increased 3%, CVRM[7] increased 19%[8] and Rare Disease increased 10%8. Excluding a one-off historical pricing adjustment, Rare Disease increased 8%
‒ Core Gross Margin of 81%, with the second quarter benefitting from currency fluctuations, and phasing of COVID-19 medicine contracts
‒ Core Operating Margin of 33%. Core Total Operating Expense increased 33%, reflecting the addition of Alexion, and continued investment in new launches and the pipeline to build industry-leading mid-to-long term growth
‒ Core EPS of $3.61, with the second quarter benefitting from a Core Tax Rate of 15%. The FY 2022 expectation for the Core Tax Rate remains 18-22%
‒ Interim dividend declared of $0.93 (76.4 pence, 9.49 SEK) per ordinary share, reflecting the Board's intent to increase to $2.90 in FY 2022, as announced at FY 2021
‒ FY 2022 Total Revenue guidance at CER increased due to an updated outlook for COVID-19 medicines and continued strong performance of the overall business, enabling further investment in the pipeline. With an expectation that Other Operating Income in H2 2022 will be similar to H1 2022, EPS guidance is unchanged
Key milestones achieved since the prior results
‒ Key data: Positive read-outs for Farxiga in HFpEF[9] (DELIVER), Imfinzi in early NSCLC[10] (AEGEAN), eplontersen in ATTRv-PN[11] (NEURO-TTRansform) and Ultomiris in NMOSD[12] (CHAMPION-NMOSD). Full results from the Enhertu DESTINY-Breast04 trial in HER2[13]-low breast cancer, presented at ASCO
‒ Key approvals: Enhertu for HER2-positive breast cancer (DESTINY-Breast03) in the US and EU; positive CHMP[14] opinions in the EU for Tezspire in severe asthma (NAVIGATOR), Lynparza[15] in early breast cancer (OlympiA) and Ultomiris in gMG[16] (CHAMPION-MG)
‒ Other regulatory milestones: US Priority Review for Imfinzi in biliary tract cancer (TOPAZ-1) and Enhertu in HER2-low metastatic breast cancer (DESTINY-Breast04), China Priority Review for Koselugo in NF1-PN[17]
Pascal Soriot, Chief Executive Officer, AstraZeneca, said:
"AstraZeneca had a strong financial first half of 2022, and great pipeline delivery. We announced practice-changing data for several medicines including Enhertu in breast cancer, Farxiga in heart failure and Ultomiris in neuromyelitis optica spectrum disorder.
We have made great progress in our efforts to combat COVID-19. Vaxzevria is estimated to have saved more than six million lives during the first year of roll-out, and Evusheld has protected hundreds of thousands of immunocompromised people, enabling them to return to a more normal life. Evusheld continues to demonstrate activity against new variants.
Given the ongoing performance of our underlying business and the contribution of our COVID-19 medicines, we are updating our revenue guidance for 2022. This has enabled us to increase our R&D investment in the exciting number of pipeline opportunities that can benefit patients and drive long term sustainable growth for our company. We look forward to announcing the results of several important late-stage trials this year and next".
Please refer to the associated PDF document to view the full announcement.
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