AstraZeneca sales jump 50 per cent as vaccine crawls to profitability
AstraZeneca’s revenues have soared 32 per cent this year to $25.4bn, powered by booming product sales.
Third quarter revenues are up 50 per cent, with the pharmaceutical giant enjoying a $9.87 billion increase in revenues over the three-month period.
The company has sold 2.2 billion vaccines since the start of the year.
It has now started signing commercial contracts to supply its vaccine next year as the pandemic moves to an “endemic phase” – in a major shift away from the drugmaker’s not-for-profit pricing.
It now expects to turn a profit on its Covid-19 vaccine, with new orders continuing into the fourth quarter
Future COVID‑19 vaccine sales are expected to be a blend of the original pandemic agreements and new orders, with the large majority coming from pandemic agreements.
The vaccine has been successfully utilised by dozens of countries, but it has also been embroiled in multiple heated geopolitical controversies and bogus efficacy claims since its announcement.
Excluding the vaccine, total revenue still increased by 21 per cent in the year to date to $23.2bn and by 34 per cent in the quarter to $8.8bn.
In the US, total revenue has increased year-to-date by 29 per cent to $8.3bn and in Europe by 40 per cent to $5.2bn, including pandemic COVID-19 vaccine revenue of $736m.
The company is also revelling in rising sales across emerging markets, with revenues up by a third, reaching $8.6bn.
In China, revenue increased 17 per cent to $4.7bn in the year-to-date and by 10 per cent in the quarter.
Its revenues were more affected by pricing pressures from volume based procurement and its national reimbursement list.
In terms of medical revenues on a sector-by-sector basis, oncology reported growth of 19 per cent, R&I increased by 16 per cent and CVRM increased its renues by 14 per cent.
Alongside revenue increases, the AstraZeneca has boosted its rare disease capabilities this quarter with the acquisition of Alexion Pharmaceuticals.
It has also announced eight positive phase three trials, including treatments for liver and prostate cancer.
Pascal Soriot, chief executive officer, said: “AstraZeneca’s scientific leadership continues to provide strong revenue growth and exceptional pipeline delivery, with eight positive late-stage readouts across seven medicines since June, including our long acting antibody combination showing promise in both prevention and treatment of COVID-19.”
Following the results, the company is trading at a 2.62 per cent drop on the FTSE 100 at 0911 GMT.