CAMBRIDGE, United Kingdom / Feb 08, 2024 / Business Wire / AstraZeneca:
Revenue and EPS summary
|
| FY 2023 | Q4 2023 | |||||||||||
|
|
| % Change |
| % Change | |||||||||
$m | Actual |
| CER1 |
| $m | Actual | CER | |||||||
- Product Sales | 43,789 | 2 |
| 4 |
| 11,323 | 5 | 5 | ||||||
- Alliance Revenue2 |
| 1,428 | 89 |
| 89 |
| 424 | 69 | 67 | |||||
- Collaboration Revenue2 | 594 | (1 | ) | (1 | ) | 277 | 75 | 74 | ||||||
Total Revenue |
| 45,811 | 3 |
| 6 |
| 12,024 | 7 | 8 | |||||
Total Revenue ex COVID-19 |
| 45,488 | 13 |
| 15 |
| 12,036 | 16 | 16 | |||||
Reported EPS | $3.84 | 81 |
| 96 |
| $0.62 | 7 | 5 | ||||||
Core3 EPS | $7.26 | 9 |
| 15 |
| $1.45 | 5 | 7 | ||||||
Financial performance for full year 2023 (Growth numbers at CER)
Pascal Soriot, Chief Executive Officer, AstraZeneca, said:
"As AstraZeneca celebrates its 25th anniversary, we are pleased to report another year of strong financial performance and scientific progress, with double-digit earnings growth, and investment in exciting areas of science, including antibody drug conjugates and cell therapies, that lay the foundations for long-term success.
We expect another year of strong growth in 2024, driven by continued adoption of our medicines across geographies. Our differentiated and growing portfolio of approved medicines, global reach and rich R&D pipeline give us confidence that we will continue to deliver industry-leading growth."
Key milestones achieved since the prior results announcement
Guidance
The Company issues its Total Revenue and Core EPS guidance for FY 2024 at CER, based on the average foreign exchange rates through 2023.
Total Revenue is expected to increase by a low double-digit to low teens percentage
Core EPS is expected to increase by a low double-digit to low teens percentage
The Company is unable to provide guidance on a Reported basis because it cannot reliably forecast material elements of the Reported results, including any fair value adjustments arising on acquisition-related liabilities, intangible asset impairment charges and legal settlement provisions. Please refer to the cautionary statements section regarding forward-looking statements at the end of this announcement.
Currency impact
If foreign exchange rates for February 2024 to December 2024 were to remain at the average rates seen in January 2024, it is anticipated that both FY 2024 Total Revenue and Core EPS would incur a low single-digit adverse impact versus the performance at CER. The Company's foreign exchange rate sensitivity analysis is provided in Table 19.
Investor Day
AstraZeneca will host an Investor Day on 21 May 2024.
For more information, see www.astrazeneca.com/investor-relations.html.
Table 1: Key elements of Total Revenue performance in Q4 2023
| % Change | |||||||||
Revenue type |
| $m | Actual % |
| CER % |
|
|
| ||
Product Sales | 11,323 | 5 |
| 5 |
|
| * Excluding COVID-19 medicines, Q4 2023 Product Sales increased by 14% | |||
Alliance Revenue |
| 424 | 69 |
| 67 |
|
| * $281m for Enhertu (Q4 2022: $188m) * $80m for Tezspire (Q4 2022: $37m) * $41m for Beyfortus (Q4 2022: $nil) | ||
Collaboration Revenue | 277 | 75 |
| 74 |
|
| * $245m Lynparza regulatory milestone (Q4 2022: $105m) * $27m Beyfortus sales milestone (Q4 2022: $nil) | |||
Total Revenue |
| 12,024 | 7 |
| 8 |
|
| * Excluding COVID-19 medicines, Q4 2023 Total Revenue increased by 16% | ||
Therapy areas | $m | Actual % |
| CER % |
|
|
| |||
Oncology | 4,989 | 23 |
| 24 |
|
| * Strong performance across all key medicines and regions | |||
CVRM | 2,702 | 18 |
| 18 |
|
| * Farxiga up 36% (35% at CER), Lokelma up 38%, roxadustat up 27%, Brilinta declined 5% (4% at CER) | |||
R&I |
| 1,675 | 13 |
| 13 |
|
| * Fasenra up 10% (9% CER), Breztri up 72%. Saphnelo and Tezspire also continue to grow rapidly, partially offset by a 16% decline in Symbicort following entry of a generic competitor in the US in the third quarter | ||
V&I |
| 413 | (64 | ) | (66 | ) |
| * $6m revenue from COVID-19 mAbs and ‑$17m for Vaxzevria, both resulting from historic contracts (Q4 2022: $734m and $95m respectively) * Beyfortus $122m, including $41m of Alliance Revenue for AstraZeneca's share of gross profits outside US, $27m of Collaboration Revenue for a sales milestone and $54m of Product Sales from product supplied to Sanofi | ||
Rare Disease |
| 1,971 | 9 |
| 9 |
|
| * Ultomiris up 39% (38% at CER), partially offset by decline in Soliris of 15% (13% at CER) * Strensiq up 12% (13% at CER) and Koselugo up 46% (48% at CER) reflecting strong patient demand | ||
Other Medicines |
| 274 | (33 | ) | (32 | ) |
| * Nexium generic competition in Japan | ||
Total Revenue |
| 12,024 | 7 |
| 8 |
|
|
| ||
Regions inc. COVID-19 |
| $m | Actual % |
| CER % |
|
|
| ||
US | 5,101 | 7 |
| 6 |
|
|
| |||
Emerging Markets |
| 2,783 | 2 |
| 8 |
|
|
| ||
- China | 1,382 | 16 |
| 16 |
|
|
| |||
- Ex-China Emerging Markets |
| 1,401 | (9 | ) | 2 |
|
|
| ||
Europe |
| 2,880 | 25 |
| 17 |
|
|
| ||
Established RoW |
| 1,259 | (9 | ) | (6 | ) |
|
| ||
Total Revenue inc. COVID-19 |
| 12,024 | 7 |
| 8 |
|
| * Growth rates impacted by lower sales of COVID-19 medicines (see table below) | ||
Regions ex. COVID-19 |
| $m | Actual % |
| CER % |
|
| |||
US |
| 5,101 | 12 |
| 12 |
|
|
| ||
Emerging Markets |
| 2,791 | 15 |
| 22 |
|
|
| ||
- China |
| 1,382 | 16 |
| 16 |
|
|
| ||
- Ex-China Emerging Markets |
| 1,409 | 14 |
| 27 |
|
|
| ||
Europe |
| 2,884 | 33 |
| 25 |
|
|
| ||
Established RoW |
| 1,259 | 4 |
| 8 |
|
|
| ||
Total Revenue ex. COVID-19 |
| 12,036 | 16 |
| 16 |
|
|
| ||
Table 2: Key elements of financial performance in Q4 2023
Metric | Reported | Reported change | Core | Core change |
| Comments6 | ||||
Total Revenue | $12,024m | 7% Actual 8% CER | $12,024m | 7% Actual 8% CER |
| * Excluding COVID-19 medicines, Q4 2023 Total Revenue increased by 16% * See Table 1 and the Total Revenue section of this document for further details | ||||
Product Sales Gross Margin | 80% | +6pp Actual +6pp CER | 80% | +3pp Actual +2pp CER |
| + In the prior year period, gross margins were reduced due to inventory write-downs and manufacturing contract terminations for Evusheld * Variations in Product Sales Gross Margin can be expected between periods due to product seasonality, foreign exchange fluctuations and other effects | ||||
R&D expense | $3,073m | 17% Actual 15% CER | $2,914m | 15% Actual 14% CER |
| + Increased investment in the pipeline * Core R&D-to-Total Revenue ratio of 24% (Q4 2022: 23%) + Quarterly phasing impact | ||||
SG&A expense | $5,371m | 16% Actual 16% CER | $4,034m | 13% Actual 12% CER |
| + Market development for recent launches and pre-launch activities * Core SG&A-to-Total Revenue ratio of 34% (Q4 2022: 32%) + Quarterly phasing impact | ||||
Other operating income and expense7 | $107m | -43% Actual -42% CER | $107m | -17% Actual -15% CER |
| ‒ Discontinuation of brazikumab development | ||||
Operating Margin | 10% | +1pp Actual +1pp CER | 23% | Stable |
| * See Product Sales Gross Margin, expenses and Other operating income and expense commentary above | ||||
Net finance expense | $337m | 7% Actual 3% CER | $259m | 5% Actual 1% CER |
| + Higher rates on floating debt and bond issuances + Increased Interest expense on income tax balances ‒ Higher interest received on cash and short-term investments | ||||
Tax rate | -7% | +9pp Actual +13pp CER | 10% | Stable |
| ‒ Intragroup purchase of intellectual property + Reviews by tax authorities, administrative appeals and changes to certain deferred tax balances * Variations in the tax rate can be expected between periods | ||||
EPS | $0.62 | 7% Actual 5% CER | $1.45 | 5% Actual 7% CER |
| * Further details of differences between Reported and Core are shown in Table 14 |
Table 3: Pipeline highlights since prior results announcement
Event | Medicine | Indication / Trial | Event | |||
Regulatory approvals and other regulatory actions | Truqap | HR-positive HER2-negative advanced breast cancer with biomarker alterations (CAPItello-291) | Regulatory approval (US) | |||
| Imfinzi | Biliary tract cancer (TOPAZ-1) | Regulatory approval (CN) | |||
| Wainua | ATTRv-PN (NEURO-TTRansform) | Regulatory approval (US) | |||
| Beyfortus | RSV (MELODY-MEDLEY) | Regulatory approval (CN) | |||
| Voydeya | PNH with EVH (ALPHA) | Regulatory approval (JP) | |||
Regulatory submissions or acceptances* | Lynparza | gBRCA breast cancer (adjuvant) (OlympiA) | Regulatory submission (CN) | |||
Lynparza + Imfinzi | Endometrial cancer (1st-line) (DUO-E) | Regulatory submission (US, EU, JP) | ||||
Enhertu | HER2-expressing tumours (DESTINY-PanTumor02, DESTINY-Lung01, DESTINY-CRC02) | Regulatory submission (US), Priority Review (US) | ||||
Enhertu | HER2+/HER2-low gastric (1st-line) (DESTINY-Gastric01) | Regulatory submission (CN) | ||||
Imfinzi + Imjudo | NSCLC (neoadjuvant) (AEGEAN) | Regulatory submission (EU) | ||||
Wainua | ATTRv-PN (NEURO-TTRansform) | Regulatory submission (EU) | ||||
Fasenra | EGPA (MANDARA) | Regulatory submission (US, EU, JP) | ||||
Ultomiris | NMOSD (CHAMPION-NMOSD) | Regulatory submission (US) | ||||
Ultomiris | gMG | Regulatory submission (CN) | ||||
Major Phase III data readouts and other developments | Imfinzi | NSCLC (unresectable, Stg. III) (PACIFIC-2) | Primary endpoint not met | |||
| acoramidis 8 | ATTR-CM | Primary endpoint met | |||
*US, EU and China regulatory submission denotes filing acceptance | ||||||
Upcoming pipeline catalysts
For a table of anticipated timings of key trial readouts, please refer to page 3 of the Clinical Trials Appendix, available on www.astrazeneca.com/investor-relations.html.
Table 4: Phase III trials started since 1 January 2023
Medicine | Trial name | Indication | ||
datopotamab deruxtecan | AVANZAR | NSCLC (1st-line) | ||
| TROPION-Lung07 | Non-squamous NSCLC (1st-line) | ||
| TROPION-Breast04 | Neoadjuvant/adjuvant triple-negative or HR-low/HER2-negative breast cancer | ||
| TROPION-Breast05 | PD-L1-positive locally recurrent inoperable or metastatic TNBC | ||
camizestrant | CAMBRIA-1 | HR-positive/HER2-negative adjuvant breast cancer | ||
| CAMBRIA-2 | HR-positive/HER2-negative adjuvant breast cancer | ||
Truqap | CAPItello-292 | HR-positive/HER2-negative advanced breast cancer | ||
volrustomig | eVOLVE-Cervical | High-risk locally advanced cervical cancer | ||
eVOLVE-Lung02 | mNSCLC (1st-line) with PD-L1 <50% | |||
| eVOLVE-Meso | Unresectable malignant pleural mesothelioma (1st-line) | ||
| eVOLVE-HNSCC | Unresected, locally advanced HNSCC | ||
rilvegostomig | ARTEMIDE-Biliary01 | BTC with curative intent | ||
saruparib | EvoPAR-PR01 | HRRm and Non-HRRm mCSPC | ||
zibo/dapa | ZENITH High Proteinuria | CKD with high proteinuria | ||
Saphnelo | DAISY | Systemic sclerosis | ||
baxdrostat | BaxHTN | Uncontrolled, including treatment-resistant, hypertension | ||
Tezspire | CROSSING | Eosinophilic oesophagitis | ||
Breztri | LITHOS | Mild to moderate asthma | ||
| ATHLOS | COPD | ||
pMDI portfolio | HFO1234ze + Breztri | COPD | ||
| HFO1234ze | Mucociliary clearance in healthy volunteers | ||
| HFO1234ze | Asthma | ||
tozorakimab | MIRANDA | COPD | ||
ipavibart (AZD3152) | SUPERNOVA | COVID-19 prophylaxis | ||
Ultomiris | ARTEMIS | Cardiac surgery-associated acute kidney injury | ||
ALXN2220 | DepleTTR-CM | Transthyretin amyloid cardiomyopathy | ||
efzimfotase alfa (ALXN1850) | HICKORY | Hypophosphatasia |
Corporate and business development
In November 2023, AstraZeneca launched Evinova, with an ambition to become a leading provider of digital health solutions to better meet the needs of healthcare professionals, regulators and patients. Evinova will prioritise bringing to market established and scaled digital technology solutions already being used globally by AstraZeneca to optimise clinical trial design and delivery. Globally-leading clinical research organisations Parexel and Fortrea have entered into agreements to offer Evinova digital health solutions to their wide customer base.
In December 2023, AstraZeneca entered into a definitive agreement to acquire Icosavax, Inc (Icosavax). The acquisition strengthens AstraZeneca's late-stage pipeline with Icosavax's lead investigational vaccine candidate, IVX-A12, a potential first-in-class, Phase III-ready, combination VLP vaccine that targets both RSV and hMPV. RSV and hMPV are both leading causes of severe respiratory infection and hospitalisation in adults 60 years of age and older and those with chronic conditions such as cardiovascular, renal and respiratory disease. Subject to the satisfaction of the conditions in the merger agreement, the acquisition is expected to close in the first quarter of 2024.
In December 2023, AstraZeneca entered into a definitive agreement to acquire Gracell Biotechnologies Inc. (Gracell), a global clinical-stage biopharmaceutical company developing innovative cell therapies for the treatment of cancer and autoimmune diseases. The proposed acquisition will enrich AstraZeneca's growing pipeline of cell therapies with GC012F, a novel, clinical-stage FasTCAR-enabled BCMA and CD19 dual-targeting CAR-T therapy, a potential new treatment for multiple myeloma, as well as other haematologic malignancies and autoimmune diseases including systemic lupus erythematosus. The transaction is expected to close in the first quarter of 2024, subject to customary closing conditions, including regulatory clearances, and Gracell shareholder approval.
In February 2024, AstraZeneca announced that it is investing $300 million in a state-of-the-art facility in Rockville, Maryland to establish life-saving cell therapy platforms for critical cancer trials and future commercial supply. To align with clinical trial timelines, the site will initially focus on pivotal clinical trial manufacturing of CAR-T cell therapies to meet current clinical supply demand. More than 150 new highly skilled jobs will be created to initially focus on manufacturing T-cell therapies to enable clinical trials to be conducted around the world. Over time, the site may expand its focus to support other therapy areas.
Sustainability highlights
Through the Sustainable Markets Initiative Health Systems Task Force, AstraZeneca announced an industry-first renewable power agreement in China together with four global healthcare leaders and renewable energy company Envision Energy, resulting in potential annual emissions savings of approximately 120,000 tonnes, the equivalent of taking 25,000 cars off the road. See the Sustainability section in this document for further details.
Conference call
A conference call and webcast for investors and analysts will begin today, 8 February 2024, at 11:45 UK time. Details can be accessed via astrazeneca.com.
Reporting calendar
The Company intends to publish its Q1 2024 results on 25 April 2024.
To read AstraZeneca's Full Year and Q4 2023 Financial Results press release in full, click here.
1 | Constant exchange rates. The differences between Actual Change and CER Change are due to foreign exchange movements between periods in 2023 vs. 2022. CER financial measures are not accounted for according to generally accepted accounting principles (GAAP) because they remove the effects of currency movements from Reported results. | |
2 | Effective 1 January 2023, the Group has updated the presentation of Total Revenue. For further details of the presentation of Alliance Revenue and Collaboration Revenue, see the Basis of preparation and accounting policies section of the Notes to the Condensed consolidated financial statements section. | |
3 | Core financial measures are adjusted to exclude certain items. The differences between Reported and Core measures are primarily due to costs relating to the acquisition of Alexion, amortisation of intangibles, impairments, legal settlements and restructuring charges. A full reconciliation between Reported EPS and Core EPS is provided in Table 13 and Table 14 in the Financial performance section of this document. | |
4 | The COVID-19 medicines are Vaxzevria, Evusheld, and sipavibart (AZD3152) – the COVID-19 antibody currently in development. | |
5 | The calculation of Reported and Core Product Sales Gross Margin (formerly termed as Gross Margin) excludes the impact of Alliance Revenue and Collaboration Revenue. | |
6 | In Table 2, the plus and minus symbols denote the directional impact of the item being discussed, e.g. a ‘+’ symbol next to an R&D expense comment indicates that the item increased the R&D expense relative to the prior year. | |
7 | Income from disposals of assets and businesses, where the Group does not retain a significant ongoing economic interest, continue to be recorded in Other operating income and expense in the Company’s financial statements. | |
8 | Partnered with BridgeBio Pharma Inc (BridgeBio) – AstraZeneca has rights to commercialise acamoridis in Japan |
| Last Trade: | US$65.63 |
| Daily Change: | 1.37 2.13 |
| Daily Volume: | 6,322,833 |
| Market Cap: | US$203.450B |
November 12, 2024 November 08, 2024 October 03, 2024 | |
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