Astrazeneca, profit doubled in 2023 to 6 billion
However, the rbitannic group disappointed the market with below-consensus profitability estimates.
3' min read
3' min read
Profitability doubled for AstraZeneca in 2023. The British pharmaceuticals group ended the last financial year with a $6 billion profit for the year, almost double the previous year's profit, thanks to the performance of its oncology division and despite the slowdown in sales of Covid drugs (sales of the company's coronavirus vaccine last year plummeted 99%). Rrevenues increased by 3% to USD 45.8 billion (+13% excluding Covid drugs).
Earnings per share rose to $1.45 in the fourth quarter alone, below analysts' estimates, pa due to costs incurred by the group for the launch of new drugs such as Airsupra for asthma.
The market disappointment
.Although the pharmaceutical company reported slightly better-than-expected fourth-quarter revenues, profits fell short of analysts' estimates, hurt by increased investment in research and development and price reductions for some drugs in emerging markets. Shares yesterday on the FTSE 100 fell about 2 per cent in the early stages after the announcement, while today they are recovering almost a percentage point.
Group diversification
.In the almost a decade since AstraZeneca rejected a takeover by US rival Pfizer, CEO Pascal Soriot has rebuilt the Anglo-Swedish manufacturer's pipeline, including blockbusters such as lung cancer drug Tagrisso, leukaemia drug Calquence and diabetes drug Farxiga. The group's diversification accelerated with several acquisitions in 2023 and a licensing deal in November that brought it into the booming market for anti-obesity drugs. Sales of Tagrisso grew by 9% last year, while revenues of Imfinzi, another anti-cancer drug, increased by 55% and sales of Calquence rose by 23%.
Demand for cancer drugs such as Tagrisso and Lynparza is fuelling sales growth, but there is concern about a new drug called datopotamab deruxtecan, or Dato-DXd, from a collaboration with Daiichi Sankyo. Investors await news of regulatory approval this year after mixed results in clinical trials. In addition, Astra entered the anti-obesity drug race late last year with an agreement to develop an experimental pill that is still in early testing.
