AstraZeneca

9 November 2023

9M and Q3 2023 results

Strong momentum in the year to date leads to increased guidance for Total Revenue ex COVID-19 medicines and Core EPS

Revenue and EPS summary

9M 2023 Q3 2023
% Change % Change
$m Actual CER $m Actual CER
- Product Sales 32,466  1  4  11,018  4  5 
- Alliance Revenue 1,004  99  99  377  76  75 
- Collaboration Revenue 317  (28) (28) 97  (46) (47)
Total Revenue 33,787  2  5  11,492  5  6 
Total Revenue ex COVID-19 33,453  12  15  11,492  12  13 
Reported EPS $3.22  >2x  >2x  $0.89  (16) (6)
Core EPS $5.80  10  17  $1.73  4  9 

Financial performance (9M 2023 figures unless otherwise stated, growthnumbers at CER)

-    Total Revenue $33,787m, up 5% despite a decline of $2,896m from COVID-19 medicines

-    Excluding COVID-19 medicines, both Total Revenue and Product Sales increased 15%

-    Total Revenue from Oncology medicines increased 20%, CVRM 19%, R&I 9%, and Rare Disease 12%

-   Core Product Sales Gross Marginof 82%, up two percentage points, reflecting the decline in sales of lower margin COVID-19 medicines

-    Core Operating Margin of 35% increased by three percentage points including the previously-announced gain from an update to the contractual relationships for Beyfortus, totalling $712m and recorded in Core Other operating income

-    Core EPS increased 17% to $5.80

-    FY 2023 Total Revenue excluding COVID-19 medicines now expected to increase by a low-teens percentage at CER

-    FY 2023 Core EPS now expected to increase by a low double-digit to low-teens percentage at CER

Pascal Soriot, Chief Executive Officer, AstraZeneca, said:

"Our company continued its strong growth trajectory in the third quarter with Total Revenue from our non-COVID-19 medicines up 13% compared to last year.

We initiated several Phase III trials of high-potential molecules this quarter, including for volrustomig, our PD-1/CTLA-4 bispecific antibody. Our portfolio of bispecifics has the potential to replace the first-generation checkpoint inhibitors across a range of cancers. We also initiated a fixed dose combination study of zibotentan with Farxiga which has the potential to significantly improve outcomes for patients with kidney disease not well controlled on current standard of care.

I am excited about the acceleration of our cardiometabolic and obesity pipeline with today's licensing agreement for ECC5004, a potential best-in-class, oral GLP-1RA. This molecule could offer an important advance, as both a monotherapy and in combinations, for the estimated one billion people living with cardiometabolic diseases such as type-2 diabetes and obesity.

Given the momentum in the year to date we have increased our full-year guidance for Total Revenue excluding COVID medicines as well as for Core EPS." 

Key milestones achieved since the prior results announcement

-    Key positive read-outs: datopotamab deruxtecan in metastatic HR-positive breast cancer (TROPION-Breast01); Imfinzi in liver cancer (EMERALD-1); Fasenra in EGPA (MANDARA)   

-    Key regulatory approvals: EU approval for Enhertu in HER2-mutant lung cancer (DESTINY-Lung02); China approvals for Forxiga in heart failure regardless of ejection fraction (DELIVER); Calquence in r/rCLL (ASCEND); Soliris in NMOSD. Japan approvals for Lynparza in prostate cancer (PROpel); Enhertu in HER2-mutant lung cancer (DESTINY-Lung02)

-    Other milestones: Tagrisso granted US Breakthrough Therapy Designation and US Priority Review in combination with chemotherapy for treatment of patients with locally advanced or metastatic EGFRm NSCLC (FLAURA2); Enhertu granted US Breakthrough Therapy Designations in HER2-positive colorectal
cancer (DESTINY-CRC01, DESTINY-CRC02) and multiple types of HER2-expressing tumours (DESTINY-PanTumor02)

Please refer to the attached PDF document to view the full announcement.

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