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On a human level, AstraZeneca’s vaccine saga has been disappointing; the clash with the EU, new data demonstrating a lack of efficacy in preventing mild to moderate infection caused by the South African variant, and the decision of the German authorities to limit vaccination in people under 65 years of age. Ultimately, this also represents excess share price.
However, the opposite can be said of AstraZeneca’s core business. The company is arguably the model for large pharmaceutical transformations, with CEO Pascal Soriot rebuilding the pipeline and establishing the necessary growth engines. This is exemplified by the recent performance of AstraZeneca. which demonstrated double digit revenue growth, improved profitability and core EPS growth of 18% at constant exchange rates. “
The oncology portfolio, AstraZeneca’s crown jewels, has grown 23% year-on-year, driven by Tagrisso, Lyparza and Imfinzi. Calquence’s historically subdued sales, and even Imfinzi compared to its peer group, have been boosted by recent test results or have more on the way. AstraZeneca’s $ 39 billion bid for Alexion continues to raise questions, and some investors have yet to rave about the idea given the heavy reliance on two drugs, Soliris and Ultomiris, and potential competitors lined up.
Backed by a rich pipeline including Tezepelumab, and with Enhertu gaining FDA approval in breast and gastric cancer, topline growth appears strong. That said, the impact of the pandemic has been felt and we could see a hangover effect on patient volume in the coming quarters.
