AstraZeneca trades higher as Q4 revenue sans COVID products grows; sees sales uptick in FY23
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AstraZeneca (NASDAQ:AZN) stock rose ~6% premarket on Thursday after mixed Q4 results and the company expecting earnings and revenue growth in FY23.
Core EPS declined -17% at actual exchange rates - AER Y/Y (-5% at constant exchange rates - CER) to $1.38, beating analysts estimates.
Q4 total revenue fell -7% Y/Y (+1% CER) to $11.21B, but missed expectations.
The British pharma giant said the revenue was impacted by the decline in sales of COVID vaccine Vaxzevria, while there was strong growth in Oncology, CVRM and Rare Disease segments. Excluding Vaxzevria, total revenue in Q4 grew +8% Y/Y (+17% at CER).
Vaxzevria sales declined -95% Y/Y to $85M. COVID therapy Evusheld generated sales of $734M in Q4. In Q3 2022 Evusheld sales were $537M, while in Q2 2022 Evusheld sales were $445M.
The company said total revenue from COVID-19 medicines (Vaxzevria, Evusheld and AZD3152, the COVID-19 LAAB15 currently in development) is expected to decline significantly in FY 2023, with minimal revenue from Vaxzevria.
Sales from Oncology segment rose +4% Y/Y (+12% CER) to ~$4.05B driven by Tagrisso whose revenue grew +2% (+12 CER) to ~$1.34B.
Lung cancer drug Imfinzi sales grew +19% Y/Y (+27% CER) to $752M. Ovarian cancer therapy Lynparza also grew 10% Y/Y (+17% CER) to $689M. Lymphocytic leukemia therapy Calquence rose +49% Y/Y (+53% CER) to $588M.
BioPharmaceuticals: CVRM segment sales increased +12% Y/Y (+22% CER) to ~$2.28B, driven by Farxiga which achieved its fourth consecutive blockbuster quarter with ~$1.78B in revenues, up +39% Y/Y (+52% CER).
Stroke prevention drug Brilinta sales fell -1% Y/Y (+4% CER) to $345M. Cresto sales declined -13 Y/Y (-2 %CER) to $224M.
BioPharmaceuticals: R&I segment sales declined -7% Y/Y (-1% CER) to ~$1.49B. COPD therapy Symbicort sales fell -9% Y/Y (-2% CER) to $620M.
BioPharmaceuticals: V&I sales declined -50% Y/Y (-43% Y/Y) to $1.16B, as sales from the COVID vaccine fell.
Rare Disease business grew +4% Y/Y (+10% CER) to ~$1.82B. Soliris sales fell -22% Y/Y (-16% CER) to $844M, Ultomiris sales grew +52% Y/Y (+62% CER) to $593M.
Dividend:
AstraZeneca said a second interim dividend of $1.97 per share (162.8 pence, 20.69 SEK) was declared, meaning a full year dividend per share of $2.90 (239.2 pence, 30.18 SEK). First interim dividend was announced with Q2 results and paid in September. Second interim dividend - announced with Q4 results and paid in March.
The company added that the record date for the second interim dividend for 2022, payable on March 27, 2023, will be Feb. 24, 2023. The ex-dividend date will be Feb. 23, 2023.
The record date for the first interim dividend for 2023, payable on Sept. 11, 2023, will be Aug. 11, 2023. The ex-dividend date will be Aug. 10, 2023.
Outlook:
"In 2023, we expect to see another year of double-digit revenue growth at CER, excluding our COVID-19 medicines. We will continue to invest behind our pipeline and recent launches while continuing to improve profitability. We plan to initiate more than thirty Phase III trials this year, of which ten have the potential to deliver peak year sales over one billion dollars," said AstraZeneca CEO Pascal Soriot.
Soriot expects the company to deliver at least 15 new medicines before the end of the decade.
The company expects total revenue to increase by a low-to-mid single-digit percentage, at CER.
Excluding COVID-19 medicines, total revenue is expected to increase by a low double-digit percentage, at CER.
Core EPS is expected to increase by a high single-digit to low double-digit percentage.
AstraZeneca noted that total revenue from China is expected to return to growth and increase by a low single-digit percentage in FY 2023.