AstraZeneca PLC said Friday that it expects sales of total revenue from COVID-19 medicines is anticipated to decline by a low-to-mid twenties percentage, but reported higher revenue in the first quarter on the back of previous vaccine contracts.
The Anglo-Swedish pharma giant said that total Revenue increased 60% to $11,390m, reflecting growth across the Company, the contribution of the Alexion medicines and several Vaxzevria contracts that are expected to complete delivery by half year 2022.
The company said that total Revenue from Oncology increased 25%, including a milestone payment; Product Sales from Oncology increased 18%. Total Revenue from CVRM increased 18%, R&I increased 4% and Rare Disease increased 7%.
Operating Margin in the quarter benefitted from phasing of costs. Core EPS rose to $1.89 in the quarter, a 20% increase from the previous year, AstraZeneca stated.
Pascal Soriot, Chief Executive Officer, AstraZeneca, said:
2022 has started strongly for AstraZeneca. Farxiga achieved $1bn revenue in the quarter and our Oncology medicines delivered Product Sales growth of 18%, despite COVID-19 continuing to impact cancer diagnosis and treatment. Today we have unveiled plans for a new strategic research and development centre in the heart of Cambridge, Massachusetts’ scientific hub. In line with our sustainability commitments, it will be designed to the highest environmental standards. Our investments in pioneering science give us confidence of further advances in the years to come.
Looking ahead, AstraZeneca said it expects total revenue growth of tens of percent in 2022 and basic earnings per share growth in the mid to high twenties of a percent. Considering the expected decline in the sales of Covid-19 medicines, however, AstraZeneca said that gross margin from those medicines is expected to be lower than company average. Emerging Markets Total Revenue, including China, is expected to grow mid-single-digits in FY 2022. The Company remains confident in the longer term outlook for Emerging Markets, driven by a large market opportunity, broader patient access and an increased mix of new medicines