AstraZeneca H1 & Q2 2024 Financial Results

AstraZeneca, headquartered in Cambridge, United Kingdom, has reported its financial performance for the first half of 2024, showcasing significant progress and a promising outlook for the remainder of the year.

The company's Total Revenue increased by 18% to $25,617 million, largely driven by an 18% growth in Product Sales and a 50% rise in Alliance Revenue. Although Collaboration Revenue saw a substantial decline of 78%, the overall financial performance remained robust. The second quarter alone contributed $12,938 million to the Total Revenue, marking a 17% growth at constant exchange rates (CER).

Key therapeutic areas experienced notable growth: Oncology, Cardiovascular, Renal and Metabolism (CVRM), and Respiratory & Immunology (R&I) each saw a 22% increase, while Rare Disease revenue rose by 15%. The Core Product Sales Gross Margin stood at 82%, with a Core Operating Margin of 33% and a Core Tax Rate of 20%. Core Earnings Per Share (EPS) increased by 5% to $4.03, although this was somewhat tempered by exceptional gains recorded in the previous year.

AstraZeneca declared an interim dividend of $1.00 (77.6 pence, 10.79 SEK), reflecting a 7-cent increase. The company's guidance for the full year 2024 has been adjusted upwards, with expectations of mid-teen percentage growth in both Total Revenue and Core EPS at CER. This revision underscores the company's confidence in its continued growth trajectory.

Pascal Soriot, Chief Executive Officer of AstraZeneca, highlighted the company's strong performance and future ambitions. He pointed to the company's goal of achieving $80 billion in Total Revenue by 2030, driven by both existing medicines and a robust late-stage pipeline. Soriot also emphasized the potential of new technologies such as antibody drug conjugates, bispecifics, cell and gene therapies, radioconjugates, and weight management medicines to fuel growth beyond 2030.

Recent months have seen several key milestones for AstraZeneca. Positive clinical trial results for Imfinzi in muscle-invasive bladder cancer, Calquence in untreated mantle cell lymphoma, and Enhertu in HR-positive, HER2-low metastatic breast cancer were among the highlights. Additionally, the company secured U.S. approvals for Imfinzi in combination with chemotherapy for advanced endometrial cancer and various regulatory approvals in the EU, Japan, and China for several other treatments.

Geographically, the U.S. market led the way with a 17% increase in revenue to $5,571 million. Emerging Markets followed with a 9% rise, with China contributing a 13% increase. Europe saw a substantial 24% growth, while the Established Rest of the World (RoW) region experienced a 5% decline.

In terms of product performance, Enhertu and Tezspire, in partnership with Daiichi Sankyo Company Limited and Amgen respectively, showed impressive sales growth. Combined sales for Enhertu reached $1,772 million, while Tezspire's sales amounted to $507 million in the first half of 2024.

AstraZeneca also made significant strides in corporate and business development. In May 2024, the company announced plans to build a $1.5 billion manufacturing facility in Singapore to enhance its antibody drug conjugates (ADCs) portfolio. Additionally, AstraZeneca completed a $140 million equity investment in Cellectis, a biotechnology firm specializing in gene editing technologies, and acquired Fusion Pharmaceuticals Inc. to bolster its radioconjugates capabilities. The acquisition of Amolyt Pharma further expanded AstraZeneca's Rare Disease pipeline, particularly in bone metabolism.

The company continues to focus on sustainability. At the 77th World Health Assembly, AstraZeneca emphasized the importance of early disease prevention, diagnosis, and treatment, as well as the need for resilient and equitable health systems.

In summary, AstraZeneca's strong financial performance in the first half of 2024, strategic acquisitions, and promising pipeline advancements position the company for sustained growth and innovation in the coming years.