UK-based pharmaceutical giant AstraZeneca Plc (AZ, NASDAQ: AZN) released its Q3 2022 earnings report, showing continued growth with a 19% year-on-year (YOY) expansion in product revenues to USD 10.98 billion (all growth figures in constant exchange rate terms).
Business Unit Performance
Growth was led by the Oncology division, which saw a 27% increase to USD 4.04 billion. The Cardiovascular, Renal, and Metabolism (CVRM) unit expanded by 18%, while Respiratory & Immunology (R&I) grew by 5%. Vaccines & Immune Therapies fell by 24% due to slowing demand for the COVID-19 vaccine Vaxzevria, with Q3 sales down 87%. Rare Diseases expanded by 11%, with sales of products acquired through the Alexion purchase reaching over USD 1.7 billion.
Leading Products
AstraZeneca’s leading products include non-small cell lung cancer (NSCLC) drug Tagrisso (osimertinib), which posted Q3 sales of USD 1.4 billion, up 20%. Heart failure therapy Farxiga (dapagliflozin) saw 50% growth to over USD 1 billion in sales. The recently launched antibody drug conjugate (ADC) Enhertu (trastuzumab deruxtecan), co-developed with Daiichi Sankyo, generated USD 160 million in quarterly sales, more than tripling the value of the previous year’s Q3.
China Market Performance
In China, sales were up 8% YOY to USD 1.541 billion in revenues, while over Q1-Q3 market revenues were down 1% YOY to USD 4.597 billion (including sales of Vaxzevria in Greater China markets). Tagrisso was highlighted as a key performer following increased first-line use and rising volumes that began to compensate for the March 2021 National Reimbursement Drug List (NRDL) price reduction. COVID-19-related lockdowns lessened in terms of market disruption during Q3 2022.
Earnings Call Highlights
Speaking during the earnings conference call, David Fredricksson, EVP of AstraZeneca Oncology globally, noted that both Tagrisso and Lynparza (olaparib) face NRDL renewals in Q4 covering the 2023 to 2024 period. Fredricksson stated, “We anticipate both medicines will incur some price reduction as a result of algorithm-based adjustments,” since the extent of price reduction for NRDLs is automatically calculated based on volume usage in hospitals.-Fineline Info & Tech
