Several multinational companies (MNCs) have released their Q1 2023 financials, showing a varied performance over the quarter.
AstraZeneca’s China Innovation Boom
AstraZeneca (AZ, NASDAQ: AZN) CEO Pascal Soriot warned that Europe is lagging behind China in fostering innovation and access to medicines. This statement came during the company’s Q1 2023 earnings call in response to recent drug regulatory reforms by the European Commission (EC). While it’s early to judge the legislation, which will take at least two years to finalize, Soriot criticized the potential legislation as detrimental to Europe’s life sciences sector. He noted that China is surpassing Europe in clinical trials and biotech innovation, becoming an attractive destination for investment. AstraZeneca’s oncology head, Susan Galbraith, highlighted recent partnerships in China, including with Cellular Biomedicine Group (CBMG) for cell therapies, and deals with Harbour Biomed and Lepu Biopharma Co., Ltd (2157.HK), focusing on bispecific antibodies and ADCs targeting CLDN18.2. AstraZeneca’s Q1 2023 report showed stable revenues of USD 10.879 billion, with an 8% growth in China sales, excluding COVID-19 vaccine sales.
Sanofi’s China Sales Decline
Sanofi (NASDAQ: SNY) reported Q1 sales of EUR 10.2 billion (USD 11.3 billion), up 5.5% year-on-year, driven by rare diseases and the top-selling Dupixent (dupilumab). Sanofi’s CEO, Paul Hudson, highlighted the potential of the T1D biologic Tzield (teplizumab) from the acquisition of Provention Bio (NASDAQ: PRVB). However, China sales dropped by 14% to EUR 755 million due to COVID-19 restrictions and price cuts on legacy products. Despite this, Sanofi’s Dupixent, Praluent (alirocumab), and vaccines performed strongly in China.
Bristol-Myers Squibb (BMS) CEO Transition
Bristol-Myers Squibb (BMS; NYSE: BMY) reported a 3% YOY decline in turnover to USD 11.3 billion, affected by generic competition for Revlimid (lenalidomide). CEO Giovanni Caforio, who announced his retirement effective November 1, will hand over leadership to CCO Chris Boerner. BMS’s US sales grew by 4%, but international sales dropped by 16%.
AbbVie’s Global Sales Dip
AbbVie (NYSE: ABBV) experienced an 8.3% YOY decrease in global sales to USD 12.2 billion. The company’s Neuroscience and Other Key Products units saw growth, but Immunology, Hematologic Oncology, Aesthetics, and Eye Care sales declined. US sales fell by 11.1%, while international sales grew by 0.9%, with Aesthetics recovering faster than expected in China.
MSD Reports 5% Q1 Decline
Merck, Sharp & Dohme (MSD; NYSE: MRK) reported a 5% downturn in Q1 sales to USD 14.5 billion. The company’s COVID-19 treatment Lagevrio (molnupiravir) and diabetes drugs Januvia and Janumet saw significant sales drops. However, Keytruda (pembrolizumab), Bridion (sugammadex), Rotateq, and the HPV Gardasil vaccine family reported strong growth, particularly in China.-Fineline Info & Tech
