AstraZeneca (AZ; NASDAQ: AZN), the UK-based multinational, reported its financial results for 2023 this week, revealing a 6% year-on-year increase in annual global revenues, reaching USD 45.8 billion at constant exchange rates. Oncology revenue surged by 21%, while cardiovascular, renal, and metabolism (CVRM) sales rose 18%. Respiratory and immunology (R&I) revenues increased by 10%, and rare diseases reported a 12% uptick, effectively offsetting a substantial 71% decline in vaccines and immune therapies due to reduced sales of COVID-19 treatments.
The standout product for the year was the type 2 diabetes medication Farxiga (dapagliflozin), which generated USD 6.0 billion in sales, marking a 39% increase year-on-year, driven by its expansion into heart failure and chronic kidney disease (CKD) markets. Following closely was the non-small cell lung cancer (NSCLC) therapy Tagrisso (osimertinib), which rose 9% to USD 5.8 billion. Other significant contributors included the PD-L1-targeted Imfinzi (durvalumab) and rare disease treatments Soliris (eculizumab) and Ultomiris (ravulizumab), achieving sales of USD 4.2 billion, USD 3.1 billion, and USD 3.0 billion, reflecting growth rates of 55%, a 14% decline, and 52% growth, respectively.
In terms of regional performance, the US market accounted for USD 19.1 billion in sales, a 6% increase year-on-year, while Europe contributed USD 9.6 billion, reflecting an 8% rise. Other established markets saw a decrease of 8% to USD 5.1 billion. In contrast, emerging markets generated USD 12.0 billion, marking a 9% growth, with China alone expanding by 7% to USD 5.9 billion.
During the earnings call, CEO Pascal Soriot highlighted a return to growth in the Chinese market, identifying opportunities within the underdeveloped chronic obstructive pulmonary disease (COPD) sector. Oncology VP Dave Fredrickson noted that while a recent anticorruption campaign has limited access to oncologists, AstraZeneca remains optimistic about Tagrisso’s potential in China, given the large EGFR-positive population and minimal competition in the adjuvant space. He acknowledged a temporary impact on Tagrisso hospital orders in Q4 but deemed it a periodic issue related to hospital budget management as the fiscal year concludes.- Flcube.com
