UK-based pharmaceutical giant AstraZeneca plc (AZ, NASDAQ: AZN) has announced its financial results for the first half of 2023, marking another quarter of robust growth in both top-line and bottom-line figures. Global revenues for the six-month period increased by 4% year-on-year (YOY) in constant exchange rate terms to USD 22.295 billion.
Excluding COVID-19 Sales Impact, Revenues Surge 16% YOY
When excluding the impact of COVID-19 sales, total revenues saw a significant increase of 16% YOY, with all non-COVID product divisions reporting double-digit growth. Oncology revenues jumped 22%, cardiovascular/renal/metabolic (CVRM) revenues increased by 20%, respiratory and immunology (R&I) grew at 10%, and Rare Diseases experienced a 12% YOY increase.
Leading Products and Portfolio Performance
AstraZeneca boasted 8 products that generated over USD 1 billion in H1’23 sales. Oncology standouts included lung cancer treatment Tagrisso (osimertinib) with USD 2.9 billion in sales, up 12% YOY; PD-L1 inhibitor Imfinzi (durvalumab) with USD 1.97 billion, up 57% YOY; PARP inhibitor Lynparza (olaparib) with USD 1.37 billion, up 10%; and BTK inhibitor Calquence (acalabrutinib) with USD 1.18 billion, up 33%. In the CVRM portfolio, Farxiga (dapagliflozin) achieved USD 2.8 billion in sales, a 33% YOY growth. In R&I, Symbicort (budesonide, formoterol) grew sales by 4% YOY to USD 1.28 billion. Rare Disease portfolio saw Soliris (eculizumab) sales at USD 1.6 billion, a -16% YOY drop, while Ultomiris (ravolizumab) generated USD 1.36 billion, up 64%.
China Market Forecast Upgraded
Regionally, excluding COVID sales, the US market grew by 17% to USD 4.782 billion, Emerging Markets including China rose by 19% to USD 3.115 billion, European sales increased by 18% to USD 2.2 billion, and the Rest of World region grew by 8% to USD 1.3 billion. China’s Q2’23 sales reached USD 1.44 billion with a 7% growth, leading AstraZeneca to raise its revenue growth forecast for the market to “low to mid-single-digit percentage” from the previously projected low single-digit.
Addressing Portfolio Pressures and New Drug Approvals in China
During the earnings conference call, executive vice-president for international markets and China, Leon Wang, highlighted the mixed pressures on the current portfolio. Oncology drugs like Tagrisso saw volume-usage grow due to National Reimbursement Drug List (NRDL) entry, but sales values were impacted by price cuts during NRDL renegotiations. Several off-patent brands faced market sales adjustments due to volume-based procurement (VBP) tendering. New drug approvals are beginning to offset these pressures, as AstraZeneca aligns its China drug development with global standards. Q2’23 saw approvals for Enhertu (trastuzumab deruxtecan), Soliris (eculizumab), and Koselugo (selumetinib) in China, with expectations for additional approvals in 2024, including Beyfortus (nirsevimab) and Fasenra (benralizumab).
CEO Pascal Soriot Dispels China-Spinoff Reports
CEO Pascal Soriot addressed recent media speculation about splitting off AstraZeneca’s China business, stating that such considerations are part of their strategic planning process, but the majority are not implemented. He confirmed satisfaction with the current structure in China.
R&D Changes: New Leadership and Pipeline Adjustments
AstraZeneca also announced changes in its R&D leadership, with the retirement of Dr. Mene Pangalos and the appointment of Sharon Barr as the new head of R&D for biopharmaceuticals. Several new molecular entities were dropped from development, including the CDK9 inhibitor AZD4573 and three molecules at the Phase I stage.-Fineline Info & Tech
