The value of AstraZeneca PLC (LON:AZN) surged by more than £4bn on Thursday after the UK drugs giant smashed forecasts with its second-quarter results.
Shares in the FTSE 100 group rose almost 5% to an all-time high of 6,674p, taking its market capitalisation to £87.5bn (US$109bn).
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At US$5.72bn, product sales were 5% ahead of analysts’ estimates, and up 14% year-on-year. Total revenue, which includes money made from collaborations, rose 13% to US$5.82bn.
Operating profit was even better, climbing 7% versus the same period of 2018 to US$1.36bn, around US$200mln more than City watchers had been expecting.
Astra’s strong sales performance was led by its Tagrisso lung cancer drug which, after an unremarkable first quarter, racked up sales of US$784mln – 13% above the consensus forecast.
Sales guidance upped
Given the healthy second-quarter sales, the drugmaker has upped its product sales guidance for the year. It now expects product sales to grow by a “low double-digit percentage”, compared with its prior estimate of a “high single-digit” rise.
Full-year earnings guidance has been left unchanged at between US$3.50-3.70.
Cash, which has been closely monitored by investors, improved somewhat as well, with Astra generating a net cash inflow of US$491mln in the first half, compared with a net outflow of US$75mln last time around.
Five new blockbusters this year
“The momentum generated last year continued into the first half, consolidating AstraZeneca's return to growth based on the strength of our new medicines,” said chief executive Pascal Soriot.
“Five of these new medicines are anticipated to be blockbusters this year, supporting sales across both Oncology and BioPharmaceuticals. Emerging Markets, the US and Japan all grew strongly, and we delivered an encouraging turnaround in Europe in the second quarter.
“Additional regulatory approvals for Lynparza in ovarian cancer in the EU and Japan, together with approvals for Breztri and Bevespi in COPD in Japan, illustrated further progress from our pipeline.”