AstraZeneca PLC (LON:AZN) said the COVID-19 vaccine has delivered sales of US$275mln in the first quarter as it made a bullish statement on its outlook.
The pharma giant expects a performance boost in the second half of 2021 as vaccine rollouts and lower infections will reduce the hit of the pandemic on trading.
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Chief executive Pascal Soriot reiterated full-year guidance for the pharma giant after first-quarter figures were in line with expectations.
Total revenue for the year is estimated to jump 11-12%, with core earnings per share (EPS) coming in at US$4.75-5.
The forecasts don’t include any revenue or profit impact from sales of the COVID-19 vaccine, nor the proposed acquisition of rare disease firm Alexion, which will close in the third quarter.
In the quarter ended 31 March, revenue climbed 15% to US$7.3bn and core EPS soared 55% to US$1.63.
Oncology was up 20%, but respiratory and immunology dipped 1% due to the generic version of asthma inhaler Symbicort in the US and phasing of COVID-19 impacts.
Emerging markets revenue advanced 14%, with China up 19%, while Europe and the US were up 28% and 10% respectively.
However, the reported gross profit margin declined to 74.3% from 77.3% last year because the COVID-19 vaccine has been sold not for a profit.
Margins were also hit by an increasing contribution from profit-sharing arrangements, mostly cancer drug Lynparza, and the impact of the Chinese National Reimbursement Drug List and the volume-based procurement patient-access programmes.
Reported R&D expense increased by 24% to US$1.7bn due to investment in Phase III and the advancement to Phase II of several clinical development programmes, particularly in BioPharmaceuticals.
The pharma giant continued to invest in its Coronavirus vaccine and potential medicines to prevent and treat the virus.
“Further significant pipeline advances were achieved as we continued to invest for long-term sustainable growth, including the OlympiA Phase III trial demonstrating Lynparza's benefit for certain forms of early breast cancer,” Soriot said.
“This sustained pipeline progress and accelerating business performance underlines our commitment to patients and delivering our growth potential, which will be further complemented by the proposed acquisition of Alexion."
“With worldwide inoculations likely to accelerate over the next few months, signs for AstraZeneca are positive," said Neil Shah, director of research at Edison Group.
"Having delivered one of the most important vaccines in human history, it is no surprise that the company has delivered such a solid set of results. In addition, with non-COVID medication making up a significant portion of this growth, the company is well-positioned for a high-growth year as 2021 continues.”
Shares rose 4% to 7,661p on Friday morning.
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