AstraZeneca to Report Q3 Earnings: Oncology and Cardiovascular Growth Drive Expectations

AstraZeneca Set to Report Strong Q3 Earnings: Oncology and Cardiovascular Divisions Fuel Growth

All eyes are on AstraZeneca plc (AZN) as the company prepares to release its third-quarter 2024 earnings on Tuesday morning. The pharmaceutical giant’s robust second-quarter performance, marked by impressive growth in its oncology and cardiovascular portfolios, has set a high bar for expectations.

Second-Quarter Success Fuels Optimism

In the second quarter, AstraZeneca reported a remarkable $12.94 billion in revenue, representing a 13% year-over-year increase (17% at constant currency). This outpaced analyst expectations of $12.75 billion, demonstrating the strength and resilience of the company’s core therapeutic areas. Adjusted earnings per American Depository Receipt (ADR), equivalent to two common shares, came in at 99 cents, aligning with consensus, while adjusted EPS reached $1.98.

Oncology Division Leading the Charge

AstraZeneca’s oncology division, the company’s largest revenue driver, experienced a substantial 15% boost in sales, reaching $5.33 billion. Several key cancer treatments contributed to this growth, including:

*

Tagrisso:

This lung cancer treatment continues to gain popularity globally, with sales increasing by 8% (12% at constant currency).
*

Imfinzi:

This immunotherapy generated $1.15 billion in sales.
*

Calquence:

As a leading therapy for first-line chronic lymphocytic leukemia (CLL), Calquence saw a significant 21% jump in revenue.
*

Enhertu:

Developed in collaboration with Daiichi Sankyo, Enhertu demonstrated exceptional growth at 46%, highlighting the strong market reception of AstraZeneca’s innovative oncology pipeline.

Cardiovascular, Renal and Metabolism (CVRM) Division Also Shines

The CVRM segment mirrored the success of the oncology division, with sales increasing by 18% (22% at CER) to $3.16 billion.

Farxiga

, AstraZeneca’s prominent diabetes and heart failure treatment, contributed $1.95 billion to the segment’s performance, reflecting a remarkable 29% sales increase.

Respiratory & Immunology (R&I) and Rare Disease Segments Contribute Positively

The Respiratory & Immunology division also experienced significant gains, with

Breztri

revenue up 44% and sales for the asthma drug

Tezspire

nearly doubling. Rare disease treatments also contributed positively, with

Ultomiris

leading this segment’s 10% growth. However, the decline of the older drug

Soliris

offset some of these gains.

Looking Ahead: Mid-Teens Percentage Growth Expected

AstraZeneca has ambitious goals for the full fiscal year, anticipating mid-teens percentage growth in both revenue and core EPS. This positive outlook is fueled by the company’s established treatments and expansion into new indications. As AstraZeneca shifts its focus away from COVID-19 vaccine revenues, it is leveraging its robust portfolio, particularly in the oncology and CVRM segments.

Key Takeaways

* AstraZeneca’s second-quarter results demonstrate strong growth driven by its oncology and cardiovascular divisions.
* Key drugs like Tagrisso, Imfinzi, Calquence, and Farxiga have been significant contributors to this success.
* The company is well-positioned for continued growth in the coming quarters, with a focus on expanding into new indications and leveraging its robust portfolio.

Investors will be closely watching AstraZeneca’s third-quarter earnings report for further insights into the company’s performance and future growth prospects.