AstraZeneca PLC (LON:AZN) scaled up its sales outlook for the second quarter in a row as new drugs continued to prove popular, particularly in emerging markets.
The pharma behemoth reported product sales of US$6.13bn in the third quarter, an increase of 16% on the same period last year that is a step up from the 12% in the first half of the year and 14% in the second quarter. At constant exchange rates (CER), the rate of growth remained at 17% from the first half.
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New drugs sales grew 62% to US$2.7bn in the quarter, including an 85% surge in emerging markets to US$539mln.
After some years in the doldrums as older blockbusters lost their patents and new products were slow to come through, the Anglo-Swedish group has been on a strong run of late as the pipeline finally began to flow, with five new drugs expected to be blockbusters in 2019.
Chief executive Pascal Soriot said: “Another strong performance from our new medicines accompanied impressive results in our key markets, most notably in China, the US and Japan. The performance reinforces our confidence in delivering sustainable earnings growth.”
Soriot said he expected full-year CER product sales to increase by “a low to mid-teens percentage”, up from prior guidance for a “low double-digit” given at the half year and “high single-digit” at the end of last year.
Encouraged by the FTSE 100 group’s continued stream of clinical trial data, the Frenchman said Astra was “continuing to ensure that we capture the benefits of our growth by balancing reinvesting in our business”.
During the period there was positive data for Lynparza as a potential treatment for prostate cancer and as an expanded treatment for ovarian cancer, as well as other positive data for oncology drugs Tagrisso, Imfinzi and PT010, and “breakthrough” data in heart failure for Farxiga.
Reported and core earnings
Reported operating profit fell 11% to US$757mln in the quarter, 13% at CER, while profits from the ‘core’ business were up 43% to US$1.9bn.
Earnings per share fell 33% to US$0.23 in the quarter while the core EPS number was up 40% to US$0.99.
Astra’s net cash inflow, a key factor for one of London’s favourite income stocks, of US$1.59bn has been generated from operating activities in the first nine months of the year, up from US$394mln a year ago.