UK-based pharmaceutical giant AstraZeneca (AZ; NASDAQ: AZN) has released its financial results for the third quarter of 2023, showing a total revenue increase of 6% year-on-year (YOY) to USD 11.5 billion in constant currency terms. Product sales accounted for USD 11.02 billion, marking a 5% YOY increase. Excluding COVID-19 medicines, total revenues saw a growth of 13% YOY. For the first nine months of 2023, total revenues rose by 5% to USD 33.8 billion.
Oncology Performance and Blockbuster Products
Oncology emerged as the strongest performer with a 20% YOY growth to USD 13.5 billion. This growth was driven by a 10% expansion for lung cancer therapy Tagrisso (osimertinib) to USD 4.38 billion, a 9% YOY increase for PARP inhibitor Lynparza (olaparib) to USD 2 billion, a 56% growth for PD-L1 Imfinfzi/Imjudo (durvalumab) to USD 3.1 billion, and sales of the HER2-targeted antibody drug conjugate (ADC) Enhertu (trastuzumab deruxtecan) reaching USD 178 million. Other notable products included diabetes and heart failure therapy Farxiga (dapagliflozin) with USD 4.4 billion in sales, up 40% YOY, Soliris (eculizumab) with USD 2.4 billion, down -15% YOY, and Ultomiris (ravulizumab) with USD 2.1 billion in sales, up 58% YOY.
China Market Dynamics and VBP Impact
China, AstraZeneca’s second-largest individual country market, saw a 1% growth in Q3 to USD 1.45 billion and a 5% YOY growth in the first nine months to USD 4.5 billion. Tagrisso sales were affected by price reductions due to National Reimbursement Drug List (NRDL) coverage, with the most recent price point effective from March 2023. A government anti-corruption campaign initiated in July 2023 led to market disruption and reduced promotional efforts, impacting sales. However, executives noted signs of recovery in Q4. David Fredrickson, EVP of AZ’s Oncology Business, mentioned that Forxiga is the next drug set for China’s volume-based program (VBP), with the earliest inclusion expected in round 10, forecasted for mid- to late-2024.
Eccogene GLP-1 Licensing Deal and Anti-Obesity Strategy
AstraZeneca announced a potential USD 2 billion licensing deal with China-based biotech Eccogene, securing ex-China development rights to ECC5004, a once-daily, low-dose, oral GLP-1R agonist. Sharon Barr, EVP of BioPharmaceuticals R&D, highlighted ECC5004’s “best-in-class” profile, including greater tolerability, lower GI adverse event rates, and a simple manufacturing process. CEO Pascal Soriot emphasized plans to use ECC5004 for obesity and combination therapies for cardiovascular, renal, and metabolic diseases, positioning AstraZeneca as a major player in the global obesity market.- Flcube.com
