AstraZeneca Expects Decline in Covid-19 Medicine Sales in 2022 -- Update
29 April 2022 - 10:02AM
Dow Jones News
By Cecilia Butini
AstraZeneca PLC on Friday said that it expects sales of its
Covid-19 medicines, including its vaccine, to decline by a
low-to-mid-20s percentage during the year, though it reported
higher first-quarter revenue on the back of previous vaccine
contracts.
The Anglo-Swedish pharmaceutical giant said revenue in the
quarter rose to $11.39 billion in the from $7.32 billion a year
earlier, due to contribution from medicines of acquired company
Alexion Pharmaceuticals and Covid-19 vaccine contracts that are
awaiting delivery this year.
The company said earnings before interest, taxes, depreciation
and amortization were negatively affected by a $1.18 billion unwind
of inventory fair-value uplift recognized on the acquisition of
Alexion. The metric was $2.19 billion, down from $2.69 billion, it
said.
Net profit was $386 million, down from $1.56 billion. Core
earnings per share rose 16% to $1.89, AstraZeneca said.
AstraZeneca's Covid-19 vaccine generated revenue of $1.15
billion, and Covid-19 treatment Evusheld brought in $469 million,
it said. Its vaccine and immune-therapy business reported a revenue
increase to $1.81 billion, from $301 million, the company said.
The company's oncology business also grew in the quarter, though
it said Covid-19 continues to affect cancer diagnosis and
treatment. Bestselling cancer drugs Tagrisso, Imfinzi, Lynparza,
Calquence and Enhertu drove a sales gain in the division as patient
access to the drugs increased, the company said.
Looking ahead, AstraZeneca said that in 2022 it expects total
revenue to increase by a high-teens percentage, and core EPS to
increase by a mid-to-high-20s percentage. Considering the expected
decline in the sales of Covid-19 medicines, however, AstraZeneca
said gross margin from those medicines is expected to be lower than
the company average.
The company said it will open a new research-and-development
center in Cambridge, Mass.
Write to Cecilia Butini at cecilia.butini@wsj.com
(END) Dow Jones Newswires
April 29, 2022 03:47 ET (07:47 GMT)
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