AstraZeneca stock falls despite Q1 revenue soars on Farxiga, cancer drugs, COVID shot; maintains outlook
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AstraZeneca (NASDAQ:AZN) shares are trading lower premarket despite Q1 revenue rising on the back of its oncology business and better than expected COVID-19 vaccine sales, which however is expected to decline as the year goes on.
Core EPS rose +16% Y/Y to $1.89, beating estimates. Total Revenue grew +56% (at AER) Y/Y to $11.39B. Diabetes therapy Farxiga stood out with sales growing +60% Y/Y to $1.00B.
COVID shot Vaxzevria brought in ~$1.15B in Q1. COVID therapy Evusheld generated sales of $469M in Q1.
The British drugmaker noted that total revenue from COVID-19 medicines is expected to decline by a low-to-mid twenties percentage, with an expected decline in sales of Vaxzevria being partially offset by growth in Evusheld sales. The majority of Vaxzevria revenue in 2022 is expected to come from initial contracts.
Sales from Oncology segment rose +21% $3.64B. while the
Lung cancer drugs, Tagrisso's revenue increased +14% to $1.3B, while Imfinzi sales grew +8% Y/Y to $599M.
Ovarian cancer drug Lynparza revenue soared +46% Y/Y to $792M.
Meanwhile heart drug Brilinta generated revenue of $325M, up +3% Y/Y.
R&D Expenses increased +33% to ~2.19B.
Outlook 2022:
The company reiterated its FY 2022 guidance (at CER%).
AstraZeneca (AZN) said total revenue is expected to increase by a high teens percentage. Consensus EPS Estimate for 2022 is $4.00.
Core EPS is expected to increase by a mid-to-high twenties percentage. Consensus Revenue Estimate for 2022 is $43.72B
The company noted that the Gross Margin from the COVID19 medicines is expected to be lower than the company average.
AZN -1.79% to $66.02 pre-market April 29