AstraZeneca hit hard as earnings miss estimates

Anglo-Swedish pharma major AstraZeneca (LSE: AZN) was trading 5% lower at lunchtime in London on Thursday.

This followed the Cambridge-based firm's presentation of its fourth-quarter and full-year 2023 financial results."Investment in exciting areas, including antibody drug conjugates and cell therapies"

Revenue for the quarter came in at $12.02 billion, a 7% increase and marginally ahead of analyst expectations of a figure of around $12.01 billion.

Core earnings per share (EPS) for the quarter rose by 5% to $1.45, but this was below market expectations of around $1.50. AstraZeneca explained that higher selling, general and administrative costs drove lower operating margins, partly due to phasing of expenses and increased investment in launches for Airsupra (albuterol/budesonide), Wainua (eplontersen) and Truqap (capivasertib).

For 2023 as a whole, revenue rose to $45.81 billion, an increase of 6% in spite of a $3.74 billion decline in sales from COVID-19 medicines. Core EPS rose 9% to $7.26.

Looking ahead to 2024, AstraZeneca is forecasting total revenue and core EPS ranging from a low double-digit to low teens percentage for the year.

Sir Pascal Soriot, chief executive, AstraZeneca, said: "As AstraZeneca celebrates its 25th anniversary, we are pleased to report another year of strong financial performance and scientific progress, with double-digit earnings growth, and investment in exciting areas of science, including antibody drug conjugates and cell therapies, that lay the foundations for long-term success.

"We expect another year of strong growth in 2024, driven by continued adoption of our medicines across geographies. Our differentiated and growing portfolio of approved medicines, global reach and rich R&D pipeline give us confidence that we will continue to deliver industry-leading growth."

Selected 2023 product sales

Tagrisso (osimertinib): $5.8 billion, up 7%

Imfinzi (durvalumab): $4.24 billion, up 52%

Lynparza (olaparib): $2.81 billion, up 7%

Calquence (acalabrutinib): $2.51 billion, up 22%