Text size
fake pictures
Shares of AstraZeneca rose on Thursday as new drug sales helped the British pharmaceutical giant exceed expectations in the second quarter.
Late-stage trials for its experimental coronavirus vaccine, developed with the University of Oxford, have also begun in the UK, Brazil and South Africa, the company said. The stock rose 2.8% in early trading and is now 16% higher than the year to date.
Revenue rose 12% to $ 12.6 billion in the first half of the year, which the company says was driven by the performance of new drugs in emerging markets and its oncology portfolio. Sales of new drugs, including the cancer drugs Tagrisso, Lynparza and Imfinzi, increased by 42% and represented 50% of total global revenue.
Read:AstraZeneca’s Covid-19 data looks positive, but not up to the hype
As its rivals reported a drop in revenue in the second quarter, in contrast, AstraZeneca reported that revenue increased 8% to $ 6.3 billion, beating estimates. Net profit for the quarter shot up to $ 756 million from $ 130 million in the same period last year.
GlaxoSmithKline and French partner Sanofi said on Wednesday that with fewer visits to the doctor and trips abroad, the closure measures had affected sales of drugs and vaccines.
Earnings per share (EPS) of $ 1.17 in the first half of 2020 increased 108% over the same period in 2019, while its operating profit margin increased by 2 percentage points to 29%. The company maintained its guidance for 2020 for total earnings to increase by a high percentage from single digit to low-double digit, and basic EPS to increase by a percentage of medium-high adolescents.
The Anglo-Swedish pharmacist returned to sales growth in November 2018 for the first time since 2014, as investment in new drugs began to reap benefits. The loss of patents on some key drugs has affected sales in the intervening years. Chief Executive Pascal Soriot described the return to growth as a “tipping point”, predicting a period of rapid growth ahead. The company has not looked back since then and has now achieved eight consecutive quarters of revenue growth.
See also:AstraZeneca eyes year-end for Covid-19 vaccine
The British pharmaceutical giant is also at the forefront of the race for a coronavirus vaccine, through its partnership with the University of Oxford. The results of the phase I / II trials, released earlier this month, showed encouraging signs, and AstraZeneca said Thursday that, along with ongoing late-stage trials in the UK, Brazil and South Africa, the trials also Shares will begin in the US, shares have risen 42% from the mid-March lows, fueled by the progress of the company’s vaccine.
Looking to the future. Citigroup analyst Andrew Baum said the company may be on track for guidance later this year. “AstraZeneca is our preferred name in the global pharmaceutical industry for the sixth year,” he said, maintaining a buy rating on the stock.
The impressive first half results show that, even without the prospect of a world-changing coronavirus vaccine, AstraZeneca is an attractive proposition for investors. While there is still a long way to go in boosting a shot, the company’s position in the race is another chord for its bow.
.
