AstraZeneca, the pharmaceutical giant, has reported a significant increase in sales in the first quarter of 2023, despite controversy surrounding the £18.7 million pay packet of its CEO, Pascal Soriot. The company’s strong growth, driven by cancer treatments and its top-selling drug Farxiga, has potentially overshadowed questions about Soriot’s compensation. AstraZeneca’s shares have also performed well, increasing by 10% this year and quadrupling in value since Soriot took over in 2012.
Despite a slowdown in sales of AstraZeneca’s (AZN) COVID-19 vaccine, the company has demonstrated significant growth in its core business, with total revenue increasing by 6% and adjusted core EPS jumping by 15% in FY 2024. AZN has a robust pipeline with 178 projects, including 17 new molecular entities in late-stage development. The company’s recent acquisitions and partnerships, such as the acquisition of Icosavax and Gracell Biotechnologies, further strengthen its pipeline and expand its therapeutic areas. Analysts project mid-teens earnings growth for AZN in 2024 and 2025, with net income growth forecast in the range of 9% to 14% annually through this decade. Despite a reasonable valuation, the dividend growth rate may be a limiting factor for some investors.
