AstraZeneca revenues rise 60% to $11bn in first quarter as it unveils plans for new Alexion headquarters
AstraZeneca has posted strong results for the first quarter of 2022, with revenue rising 60 per cent to $11.39billion (£9.1bn).
The Cambridge-headquartered biopharmaceutical company attributed this to growth across its products, several contracts for its Covid-19 vaccine and the contribution of its recently-acquired rare disease business Alexion.
The company also unveiled plans for a new research and development site in Cambridge, Massachusetts, to be completed in 2026 that will serve as Alexion’s headquarters and be home to 1,500 staff.
CEO Pascal Soriot said: “2022 has started strongly for AstraZeneca. Farxiga achieved $1bn revenue in the quarter and our oncology medicines delivered product sales growth of 18 per cent, despite Covid-19 continuing to impact cancer diagnosis and treatment.
“High-level results from the DESTINY-Breast04 trial pointed to Enhertu’s potential to redefine treatment of HER2-low metastatic breast cancer, and Ultomiris became the first and only long-acting C5 inhibitor approved for generalised myasthenia gravis in the US.
“Today we have unveiled plans for a new strategic research and development centre in the heart of Cambridge, Massachusetts’ scientific hub. In line with our sustainability commitments, it will be designed to the highest environmental standards.
“Our investments in pioneering science give us confidence of further advances in the years to come.”
The company delivered an operating profit in the quarter of $877million on a reported basis, and a core profit of £3.961bn, with core earnings per share of $1.89, up 20 per cent. It forecasts mid to high-teens revenue growth in 2022 and said it is well-positioned to deliver continued growth to 2025 and beyond.
In the first quarter of this year, sales of Vaxzevria - more commonly known as the Oxford/AstraZeneca vaccine - grew to $1.145bn. It had been offered on a non-profit basis during the pandemic, until the company determined Covid-19 to be endemic.
The company expects revenue from the vaccine to decline by up to a quarter in 2022. Sales of it in Europe are down 40 per cent. The continent had been responsible for 80 per cent of orders.
But sales of AstraZeneca’s new Covid-19 treatment, Evusheld, which has been approved for use in the UK for those with weakened immune systems, are expected to offset partially the decline in vaccine revenue. The company recorded $469m in revenue from the combination antibody therapy in Q1.
Revenue in the US was up 79 per cent, while in Europe it rose 57 per cent and in emerging markets grew by 32 per cent, on a constant exchange rate basis.
Its rare disease business delivered $1.7bn in revenue, up seven per cent.
Discussing Alexion’s new home, Mr Soriot said: “Today’s announcement is a milestone moment following the acquisition of Alexion in July 2021.
“Our combined company has already successfully leveraged internal scientific synergies, and this move will act as a catalyst for even more external collaboration and innovation.
“Kendall Square, Cambridge, is at the heart of the life sciences and innovation hub of the greater Boston area, and our new site will put us right at the centre of this space.
“The move will provide access to some of the most innovative partners in academia and biotech, offering opportunities to accelerate our growth and collaborate with like-minded organisations as we continue to push the boundaries of science to deliver advances for patients.”
AstraZeneca has committed more than $7m to response efforts in Ukraine and neighbouring countries, following the Russian invasion, donating medicines and funds to relief agencies, UNICEF and the Red Cross.
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