LONDON: AstraZeneca has kicked off the year with a remarkable 19% increase in Total Revenue, reaching $12.679 billion in the first quarter of 2024. The pharmaceutical giant attributes this surge to an 18% rise in Product Sales and sustained growth in Alliance Revenue from its partnered medicines.

The company’s financial health is further evidenced by a double-digit growth in Total Revenue across several key sectors: Oncology soared by 26%, Cardiovascular, Renal and Metabolism (CVRM) by 23%, Respiratory & Immunology (R&I) by 17%, and Rare Disease by 16%. AstraZeneca also boasts a robust Core Product Sales Gross Margin of 82% and a Core Operating Margin of 34%.

Despite these impressive figures, the Core Earnings Per Share (EPS) saw a 13% increase to $2.06, slightly lagging behind Total Revenue growth, primarily due to a $241 million gain in the previous year from the disposal of Pulmicort Flexhaler US rights.

At the Annual General Meeting on April 11, 2024, AstraZeneca announced a dividend hike for FY 2024, increasing by $0.20 per share to $3.10 per share, marking a 7% increase in the annual dividend. The company has reiterated its guidance for Total Revenue and Core EPS at Constant Exchange Rates (CER) for FY 2024, projecting a low double-digit to low teens percentage growth.

Pascal Soriot, CEO of AstraZeneca, expressed confidence in the company’s trajectory, stating, “AstraZeneca had a very strong start in 2024 with substantial Total Revenue growth of 19% in the first quarter. Our strong pipeline momentum continued, and we are excited about the positive trial results for Imfinzi and Tagrisso in lung cancer.”

The company has achieved significant milestones since the last results announcement, including positive outcomes for Tagrisso and Imfinzi in various stages of lung cancer, as well as multiple approvals in the US, EU, and Japan for a range of treatments.

Looking ahead, AstraZeneca anticipates substantial increases in Collaboration Revenue, driven by success-based milestones and anticipated transactions. However, Other Operating Income is expected to decrease significantly, as the previous fiscal year included notable gains from the disposal of Pulmicort Flexhaler US rights and updates to contractual arrangements for Beyfortus.

The Core Tax Rate is projected to be between 18-22%. Due to the unpredictable nature of certain Reported results elements, the company cannot provide guidance on a Reported basis.

In terms of currency impact, if exchange rates from April to December 2024 remain consistent with March 2024 rates, FY 2024 Total Revenue may face a low single-digit adverse impact, while Core EPS could see a mid single-digit adverse impact.

AstraZeneca’s Investor Day on May 21, 2024, is highly anticipated, where the company will outline its evolution and affirm its commitment to sustaining industry-leading growth.