AstraZeneca Forecasts Growth In 2023 Earnings, Revenue Despite Fall In COVID-19 Products, Plans To Deliver 15 New Medicines This Decade

  • AstraZeneca Plc AZN has reported Q4 core EPS of $1.38, down 17% Y/Y (-5% constant currency).
  • The company clocked Q4 sales of $11.21 billion, -7% (+1% CC), in line with the consensus.
  • The core gross margin of 77% in the fourth quarter was impacted by inventory write-downs and manufacturing termination fees for Evusheld, its COVID-19 treatment.
  • Fourth-quarter revenue was also hurt by a decline in sales of AstraZeneca's COVID-19 vaccine Vaxzevria.
  • "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," added the CEO.
  • Guidance: AstraZeneca expects core EPS to increase by a high single-digit to low double-digit percentage in 2023.
  • Total revenue excluding COVID-19 medicines is expected to increase by a low double-digit percentage.
  • Overall revenue is expected to increase by a low-to-mid single-digit percentage.
  • CEO Pascal Soriot said the firm was on a path to deliver at least 15 new medicines this decade.
  • Total Revenue from China is expected to return to growth and increase by a low single-digit percentage in FY 2023.
  • The company forecast on Thursday that core operating expenses would increase by a low-to-mid single-digit percentage, citing its investment in recent drug launches and the start of new trials.
  • Price Action: AZN shares are up 5.52% at $67.91 in premarket on the last check Thursday.
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