AstraZeneca PLC (LON:AZN) has achieved a feat that not many companies will manage this year – it maintained its sales and earnings guidance after a strong opening three months.
Standout for Anglo-Swedish drugs giant, which is now the UK’s largest company, was the company’s oncology portfolio with emerging products such as Tagrisso, Imfinzi and Lynparza registering year on year growth of 56%, 57% and 67% respectively.
The coronavirus outbreak appears to have exerted little impact on the supply chain, while stocking levels with customers such as hospitals and pharmacists appear to have grown. This gave AZ a temporary boost, which will unwind later this year.
In the fine print of the results statement the company confirmed it is committed to a progressive dividend payment, adding that it is on the lookout for acquisition opportunities.
Total revenue for the three months ended March 31 was US$6.35bn, up 16%, or 17% adjusted for fluctuating exchange rates. Reported earnings per share were 59 cents, a rise of 27%, while core EPS were US$1.05, up 17%.
Looking at the year as a whole AZ said total revenue was expected to increase by “a high single-digit to a low double-digit percentage”, with core EPS advancing by a “mid- to high-teens percentage”.
"Our focus ensured another quarter of strong growth across every therapy area and region. The new medicines performed extremely well, and our pipeline continued to deliver,” said chief executive Pascal Soriot.
As part of its coronavirus response the drugs major has donated nine million face masks and has teamed up with GlaxoSmithKline and Cambridge University to deliver 30,000 tests a day.
“I could not be prouder of how the AstraZeneca team has responded to the challenges of COVID-19,” said the AZ CEO.
“We moved quickly to maintain continuity of care, contribute to society, and use our scientific expertise to fight the pandemic.”