AstraZeneca raises FY revenue guidance, names new chairman

Drugmaker AstraZeneca raised full-year revenue guidance on Friday as it provided details of its "strong" first trading half and announced that Michel Demaré would take over as the group's chairman in April 2023.

Astra-Zeneca, which reported a 48% increase in interim revenues to $22.16bn, said total revenues were now expected to increase by "a low twenties percentage", up from previous estimates in the "high teens".

Product sales were up 41% at $21.61bn and collaboration revenues came to $551.0m for the six months ended 30 June. Total revenue from oncology increased 22%, including receipt of a milestone payment, product sales from oncology increased 18%, while total revenue from R&I increased 3%, CVRM revenues improved 19% and rare diseases revenues grew 10%.

Interim core earnings grew 43% to $3.61 per share, while reported earnings fell 70% to $0.48 per share.

AZN said gross margins printed at 81% in the half, with the second quarter benefitting from currency fluctuations and the phasing of Covid-19 medicine contracts, while core operating margins increased to 33%, reflecting its recent acquisition of Alexion and continued investment in new launches and its pipeline.

AstraZeneca, which declared an interim dividend of $0.93 per share, also said chairman Leif Johansson will be replaced by Vodafone director Michel Demaré following the group's annual general meeting in April.

Reporting by Iain Gilbert at Sharecast.com