AstraZeneca’s H1 and Q2 2024 Financial Results
Strong underlying growth supports FY 2024 guidance upgrade, with both Total Revenue and Core EPS now expected to increase by a mid teens percentage at CER1
Revenue and EPS summary
H1 2024 |
% Change |
Q2 2024 |
% Change |
|||||
$m |
Actual |
CER |
$m |
Actual |
CER |
|||
- Product Sales |
24,629 |
15 |
18 |
12,452 |
14 |
18 |
||
- Alliance Revenue |
|
939 |
50 |
50 |
482 |
42 |
42 |
|
- Collaboration Revenue |
49 |
(78) |
(78) |
4 |
(98) |
(98) |
||
Total Revenue |
|
25,617 |
15 |
18 |
12,938 |
13 |
17 |
|
Reported EPS |
|
13 |
23 |
|
6 |
15 |
||
Core2 EPS |
|
(1) |
5 |
|
(8) |
(3) |
Financial performance for H1 2024 (Growth numbers at constant exchange rates)
-
Total Revenue up 18% to
$25,617m , driven by an 18% increase in Product Sales and continued growth in Alliance Revenue from partnered medicines - Total Revenue growth from Oncology was 22%, CVRM 22%, R&I 22%, and Rare Disease 15%
- Core Product Sales Gross Margin3 of 82%
- Core Operating Margin of 33%
- Core Tax Rate of 20%
-
Core EPS increased 5% to
$4.03 . The increase in Core EPS was lower than Total Revenue growth principally due to gains recognised in the prior year, specifically a$241m gain on the disposal of Pulmicort Flexhaler US rights (Q1 2023), and a$712m gain relating to updates to contractual arrangements for Beyfortus (Q2 2023) -
Interim dividend increased 7c to
$1.00 (77.6 pence ,10.79 SEK ) has been declared - Guidance for FY 2024 increased, with Total Revenue and Core EPS anticipated to grow by a mid teens percentage at CER (previously a low double-digit to low teens percentage). An increase in Collaboration Revenue is not assumed in the upgraded guidance
“Building on our strong growth in the first half of the year and continued underlying demand for our medicines we are upgrading our FY 2024 guidance for both Total Revenue and Core EPS.
At our Investor Day in May we set out a new revenue ambition to deliver
In the year to date we have continued to make encouraging progress with several disruptive technologies, including antibody drug conjugates, bispecifics, cell and gene therapies, radioconjugates, and weight management medicines, all of which have the potential to drive our growth beyond 2030.”
Key milestones achieved since the prior results announcement
- Positive read-outs for Imfinzi in combination with chemotherapy in muscle-invasive bladder cancer (NIAGARA), Calquence in untreated mantle cell lymphoma (ECHO), Enhertu in HR-positive, HER2-low metastatic breast cancer (DESTINY-Breast06)
-
US approvals for Imfinzi in combination with chemotherapy followed by Imfinzi monotherapy for primary advanced or recurrent endometrial cancer that is mismatch repair deficient (DUO-E). EU approvals for Truqap in combination with Faslodex for biomarker-positive estrogen receptor-positive, HER2‑negative advanced breast cancer (CAPItello-291), Tagrisso with the addition of chemotherapy for 1st‑line EGFRm NSCLC (FLAURA2).
Japan andChina approvals for Tagrisso with the addition of chemotherapy for the 1st‑line EGFRm NSCLC (FLAURA2)
Guidance
Due to strong underlying growth in Product Sales and Alliance Revenue, the Company raises its Total Revenue and Core EPS guidance for FY 2024 at CER, based on the average foreign exchange rates through 2023.
Total Revenue is expected to increase by a mid teens percentage
|
Core EPS is expected to increase by a mid teens percentage
|
- An increase in Collaboration Revenue is not assumed in the upgraded guidance (previously assumed a substantial increase)
-
Other operating income is expected to decrease substantially (FY 2023 included a
$241m gain on the disposal of Pulmicort Flexhaler US rights, and a$712m one-time gain relating to updates to contractual arrangements for Beyfortus) - The Core Tax rate is expected to be between 18-22%
The Company is unable to provide guidance on a Reported basis because it cannot reliably forecast material elements of the Reported results, including any fair value adjustments arising on acquisition-related liabilities, intangible asset impairment charges and legal settlement provisions. Please refer to the cautionary statements section regarding forward-looking statements at the end of this announcement.
Currency impact
If foreign exchange rates for
Table 1: Key elements of Total Revenue performance in Q2 2024
% Change |
||||||
Revenue type |
|
$m |
Actual % |
CER % |
|
|
Product Sales |
12,452 |
14 |
18 |
|
|
|
Alliance Revenue |
482 |
42 |
42 |
• $344m Enhertu (Q2 2023: |
||
Collaboration Revenue |
4 |
(98) |
(98) |
• Q2 2023 included |
||
Total Revenue |
|
12,938 |
13 |
17 |
|
|
Therapy areas |
$m |
Actual % |
CER % |
|
|
|
Oncology |
5,331 |
15 |
19 |
|
• Tagrisso up 8% (12% at CER) due to strong global demand, Calquence up 21% (22% at CER) with sustained leadership in 1L CLL. Enhertu Total Revenue up 46% (49% at CER) |
|
CVRM |
3,160 |
18 |
22 |
|
• Farxiga up 29% (32% at CER),Lokelma up36%(41% at CER) |
|
R&I |
|
1,905 |
23 |
26 |
|
• Breztri up 44% (47% at CER). Saphnelo up 65%, Tezspire up 97% (>2x at CER), Symbicort up 20% (25% CER) |
V&I |
119 |
(57) |
(53) |
• The drop in V&I revenue was primarily driven by lower Collaboration Revenue from COVID-19 mAbs
|
||
Rare Disease |
2,147 |
10 |
14 |
• Ultomiris up 33% (36% at CER), partially offset by decline in Soliris of 14% (8% at CER)
|
||
Other Medicines |
|
276 |
(11) |
(5) |
|
|
Total Revenue |
|
12,938 |
13 |
17 |
|
|
Regions |
|
$m |
Actual % |
CER % |
|
|
US |
5,571 |
17 |
17 |
|
|
|
Emerging Markets |
|
3,386 |
9 |
18 |
|
|
- |
1,630 |
13 |
18 |
|
|
|
- Ex-China Emerging Markets |
|
1,756 |
5 |
18 |
|
|
|
|
2,732 |
24 |
24 |
|
|
Established RoW |
|
1,249 |
(5) |
6 |
|
|
Total Revenue |
|
12,938 |
13 |
17 |
|
|
Key partnered medicines
-
Combined sales of Enhertu, recorded by Daiichi Sankyo Company Limited (Daiichi Sankyo) and
AstraZeneca , amounted$1,772m in H1 2024 (H1 2023:$1,169m ). -
Combined sales of Tezspire, recorded by Amgen and
AstraZeneca , amounted to$507m in H1 2024 (H1 2023:$257m ).
Table 2: Key elements of financial performance in Q2 2024
Metric |
Reported |
Reported change |
Core |
Core
|
|
Comments4 |
Total Revenue |
|
13% Actual
|
|
13% Actual
|
|
• See Table 1 and the Total Revenue section of this document for further details |
Product Sales Gross Margin |
82% |
Stable Actual
|
83% |
Stable Actual
|
|
• Variations in Product Sales Gross Margin can be expected between periods due to product seasonality (e.g. FluMist and Beyfortus in H2), foreign exchange fluctuations and other effects |
R&D expense |
|
13% Actual
|
|
12% Actual
|
+ Increased investment in the pipeline
|
|
SG&A expense |
|
-1% Actual
|
|
13% Actual
|
+ Market development for recent launches and pre-launch activities
|
|
Other operating income and expense5 |
|
-92% Actual
|
|
-92% Actual
|
|
‒The prior year quarter included a |
Operating Margin |
21% |
Stable Actual
|
32% |
-6pp Actual
|
|
• See commentary above on Gross Margin, R&D, SG&A and Other operating income and expense |
Net finance expense |
|
-7% Actual
|
|
10% Actual
|
|
+ Higher level of Net debt |
Tax rate |
20% |
+7pp Actual
|
19% |
+2pp Actual
|
|
• Variations in the tax rate can be expected between periods |
EPS |
|
6% Actual
|
|
-8% Actual
|
|
• Further details of differences between Reported and Core are shown in Table 12 |
Table 3: Pipeline highlights since prior results announcement
Event |
Medicine |
Indication / Trial
|
Event |
Regulatory approvals and other regulatory actions |
Imfinzi |
Primary advanced or recurrent endometrial cancer with mismatch repair deficiency (DUO-E) |
Regulatory approval (US), CHMP positive opinion (EU) |
Imfinzi + Lynparza |
Primary advanced or recurrent endometrial cancer with mismatch repair proficiency (DUO-E) |
CHMP positive opinion (EU) |
|
Tagrisso |
EGFRm NSCLC (1st-line) (FLAURA2) |
Regulatory approval (EU, JP, CN) |
|
Truqap |
Biomarker-positive ER-positive HER2-negative locally advanced or metastatic breast cancer (CAPItello-291) |
Regulatory approval (EU) |
|
|
|
|
|
Regulatory submissions
|
Tagrisso |
EGFRm NSCLC (Stage III unresectable) (LAURA) |
sNDA acceptance and Priority Review (US) |
Dato-DXd
|
Non-squamous NSCLC (2nd- and 3rd-line) (TROPION-Lung01) |
Regulatory submission (EU) |
|
sipavibart |
Prevention of COVID-19 (SUPERNOVA) |
Regulatory submission (EU) |
|
|
|
|
|
Major Phase III data readouts and other developments |
Calquence |
Mantle cell lymphoma (1st‑line) (ECHO) |
Primary endpoint met |
Dato-DXd |
Locally advanced or metastatic NSCLC (TROPION-Lung01) |
Dual primary endpoint OS not met in the intention to treat population |
|
Enhertu |
HER2-low breast cancer (2nd-line) (DESTINY-Breast-06) |
Primary endpoint met |
|
Imfinzi |
Muscle-invasive bladder cancer (NIAGARA) |
Primary endpoint met |
|
Imfinzi |
Adjuvant use in early-stage PD-L1 ≥25% NSCLC (Adjuvant BR.31) |
Primary endpoint not met |
|
|
|
|
|
|
Truqap |
Locally advanced or metastatic TNBC (CAPItello-290) |
Primary endpoint not met |
|
|
|
|
|
sipavibart |
Prevention of COVID-19 (SUPERNOVA) |
Primary endpoint met |
*US, EU and |
Upcoming pipeline catalysts
For recent trial starts and anticipated timings of key trial readouts, please refer to the Clinical Trials Appendix, available on www.astrazeneca.com/investor-relations.html.
Corporate and business development
In
In
In
In
Sustainability highlights
At the 77th
Conference call
A conference call and webcast for investors and analysts will begin today,
Reporting calendar
The Company intends to publish its 9M and Q3 2024 results on
To read
1 |
Constant exchange rates. The differences between Actual Change and CER Change are due to foreign exchange movements between periods in 2024 vs. 2023. CER financial measures are not accounted for according to generally accepted accounting principles (GAAP) because they remove the effects of currency movements from Reported results. |
2 |
Core financial measures are adjusted to exclude certain items. The differences between Reported and Core measures are primarily due to costs relating to the amortisation of intangibles, impairments, legal settlements and restructuring charges. A full reconciliation between Reported EPS and Core EPS is provided in Table 11 and Table 12 in the Financial performance section of this document. |
3 |
The calculations for Reported and Core Product Sales Gross Margin exclude the impact of Alliance Revenue and Collaboration Revenue. |
4 |
In Table 2, the plus and minus symbols denote the directional impact of the item being discussed, e.g. a ‘+’ symbol next to a comment related to the R&D expense indicates that the item resulted in an increase in the R&D spend relative to the prior year. |
5 |
Income from disposals of assets and businesses, where the Group does not retain a significant ongoing economic interest, continue to be recorded in Other operating income and expense in the Company’s financial statements. |
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Global Media Relations team
global-mediateam@astrazeneca.com
+44 (0)1223 344 800
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