AstraZeneca FY core EPS in line; Aims for growth in 2023

Pharma giant AstraZeneca reported full-year earnings in line with expectations and said it expected 2023 core profits to increase by high-single to low-double digits.

The Cambridge-based company on Thursday reported core earnings per share of $6.66 as revenue rose 19% to $44bn. Total Revenue in the fourth quarter was impacted by the decline in sales of its Covid-19 treatment and pre-tax profit came in at $2.5bn, compared with a $265m a year earlier.

AstraZeneca said it expected revenue from the vaccine, now called Vaxzevria, to hit “minimal” levels. Sales of the drug fell 94% during the last quarter of 2022.

Total fourth quarter revenue fell 7% to $11.2bn, reflecting the slowdown in Covid vaccine sales as the pandemic's effects eased over 2022. There was also increased competition from rival treatments made by Pfizer and Moderna, which now dominate the market.

On a constant currency basis revenue rose 1%, and excluding the Covid-19 vaccine, were up 17%, boosted by sales of drugs for heart failure, cancer and rare diseases.

Chief executive Pascal Soriot said the the sales increase last year showed the company was on track to deliver “industry-leading revenue growth” to 2025 and beyond.

“We will continue to invest behind our pipeline and recent launches while continuing to improve profitability,” he said.

Reporting by Frank Prenesti for Sharecast.com