AstraZeneca sets sights on $80B in revenue by 2030
21 May 2024
ADC
A decade ago, as British drugmaker AstraZeneca fought off a hostile takeover bid by Pfizer, CEO Pascal Soriot made a big promise: The company, he said, would boost sales by nearly three-quarters to reach $45 billion by 2023.
With that goal now successfully met, Soriot on Tuesday announced a plan to push the company even higher, setting a target of $80 billion in annual sales by 2030. A slate of new medicines in metabolic and autoimmune disease headline the plan, which also involves sustaining existing businesses in respiratory disorders and cancer.
AstraZeneca will be challenged, however, by patent expirations for current blockbuster drugs like Farxiga, Lynparza and Brilinta in the coming years, putting pressure on the company’s research and development division to deliver. Reaching the new goal will also mean outperforming Wall Street expectations, as analysts’ consensus estimates put revenue at $67 billion in 2030, according to Jefferies’ Peter Welford, who has forecast $70 billion.
AstraZeneca expects to launch 20 new drugs over the target time period, which it measures as starting in November 2022. The company has launched six medicines since then and is eyeing potential label expansions for its asthma drugs Fasenra and Tezspire based on data readouts expected this year. Two trial readouts for new cardiovascular drugs are coming in 2025, while an antibody-drug conjugate called datopotamab deruxtecan is in late-stage development for breast and lung cancer. Welford forecasts more than $9 billion in peak sales for datopotamab deruxtecan, which is part of a partnership with Daiichi Sankyo.
Executives are banking on extending the Farxiga franchise through fixed-dose combinations with new compounds to treat heart failure and chronic kidney disease. And although AstraZeneca trails companies like Novartis and Johnson & Johnson in the fields of radiopharmaceuticals and bispecific antibodies, the company is advancing its own prospects.
AstraZeneca is also pushing into hot areas like obesity drug research, including an oral “incretin” drug it licensed last year and combinations of other hormone therapies that affect appetite and metabolism. Those remain in early to mid-stage development, however, and will have to prove competitive to Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound.
Further out, AstraZeneca is investing in new approaches to treat diseases, like CAR-T cell therapies for autoimmune disorders.
“The breadth of our portfolio together with continued investment in innovation supports sustained growth well past the end of the decade,” Soriot said in a statement.
In a note to clients, Welford argued for caution. AstraZeneca doesn’t have many immediate data readouts from experimental drugs that quickly could add to revenue, making investors concerned about growth past 2026, he wrote. Nonetheless, “management's successful track record” in delivering on its promises could give credibility to the company’s goal, Welford added.
“[T]he new launches flagged as underpinning the target at today's event could prompt [analysts] to reassess these opportunities over time,” he wrote.
'
For more details,please visit the original website
The content of the article does not represent any opinions of Synapse and its affiliated companies. If there is any copyright infringement or error, please contact us, and we will deal with it within 24 hours.
Organizations
Indications
Targets
-Drugs
Hot reports
Get started for free today!
Accelerate Strategic R&D decision making with Synapse, PatSnap’s AI-powered Connected Innovation Intelligence Platform Built for Life Sciences Professionals.
Start your data trial now!
Synapse data is also accessible to external entities via APIs or data packages. Leverages most recent intelligence information, enabling fullest potential.