AstraZeneca ($AZN) has recently enhanced its financial expectations for 2024, forecasting an increase in total revenue and core earnings per share (EPS). This optimistic outlook is attributed to robust product sales and substantial revenue from strategic alliances during the first half of the year, which significantly bolstered the company's interim performance.
The pharmaceutical powerhouse announced on Thursday that it now anticipates both total revenue and core EPS to grow by a mid-teens percentage rate for the full year. This marks a notable escalation from previous projections that indicated a more modest low double-digit to low-teens growth rate. During this announcement, Chief Executive Officer Pascal Soriot emphasized the "continued underlying demand for our medicines," highlighting what the company views as a lasting trend.
For the first half of the year, AstraZeneca reported a profit attributable to shareholders amounting to $4.11 billion, a notable increase from $3.62 billion recorded in the same period last year. Total revenue surged by 18%, reaching $25.62 billion, driven primarily by a striking 18% annual increase in product sales, which climbed to $24.63 billion.
Additionally, the revenue derived from medicine partnerships experienced a remarkable 50% increase, totaling $939 million. It’s crucial to note that all percentage variations cited are based on constant exchange rates, which provide a clearer picture by eliminating the effects of currency fluctuations.
Cancer therapies played a pivotal role in boosting AstraZeneca's revenue during this period, contributing an impressive $10.44 billion. Among the various treatments, the Type 2 diabetes medication Farxiga led the sales chart, generating $3.84 billion, closely followed by the lung cancer treatment Tagrisso, which brought in $3.20 billion.
At the company’s Investor Day held in May, AstraZeneca set an ambitious target, aiming for total revenue of $80 billion by 2030. This aspiration reflects the perceived vast growth potential not only from existing approved medications but also from promising candidates in the late-stage development pipeline.
Soriot noted that this year alone, AstraZeneca has announced five positive Phase III study results, which are expected to significantly influence future growth trajectories. In a further demonstration of financial health, the company's board announced an interim dividend of $1 per share, which is scheduled for distribution on September 9 to shareholders recorded as of August 9.
This dividend surpasses the previous year’s payout of $0.93 per share, illustrating a commitment to returning value to shareholders in conjunction with growth. However, despite this positive financial outlook, AstraZeneca’s shares dipped by 2% in London during late morning trading, reflective of broader market dynamics.
Investors will be observing closely how the company navigates this phase of growth amid industry challenges, as price movements and earnings reports continue to shape the financial landscape..