AstraZeneca posts strong Q1 2024 results with significant revenue and EPS growth

AstraZeneca PLC has reported a notable performance in the first quarter of 2024, with total revenue reaching $12,679 million, marking a 19% increase at constant exchange rates (CER). The increase was primarily driven by an 18% rise in product sales, bolstered by significant growth in alliance revenue, which surged by 59% at CER. The company also experienced substantial increases in collaboration revenue.

The pharmaceutical giant’s earnings per share (EPS) also saw impressive growth, with reported EPS climbing to $1.41, up by 21% at CER, and core EPS growing to $2.06, a 13% increase. This growth in core EPS, however, was somewhat moderated compared to total revenue, primarily due to a $241 million gain in the prior year from the disposal of Pulmicort Flexhaler US rights.

AstraZeneca’s CEO, Pascal Soriot, highlighted the strong start to the year, attributing it to substantial revenue growth and continued momentum in the company’s product pipeline. “Our strong pipeline momentum continued and already this year we announced positive trial results for Imfinzi and Tagrisso that were unprecedented in lung cancer,” Soriot stated.

Significant Pipeline Developments and Regulatory Approvals

The quarter also saw key milestones with positive trial outcomes and regulatory approvals. Noteworthy developments include US approvals for Enhertu in HER2-positive solid tumors and Ultomiris for NMOSD, along with several other approvals across different regions and therapeutic areas. The company also reported successful trial results for its oncology drugs, Tagrisso and Imfinzi.

Financial Guidance and Future Prospects

Looking ahead, AstraZeneca has reiterated its financial guidance for FY 2024, expecting total revenue and core EPS to increase by a low double-digit to low teens percentage at CER. The forecast reflects ongoing growth driven by new and existing products, though the company anticipates a decrease in other operating income, affected by one-time gains in the previous fiscal year.