AstraZeneca PLC (LSE:AZN) followed its smaller rival GSK PLC (LSE:GSK, NYSE:GSK) by upgrading guidance for the full year after a bumper first half which exceeded expectations.
The key driver for the outperformance appears to be sales of the group’s Covid vaccine, which was jointly developed with the University of Oxford.
The drugs giant had expected revenues from the jab to decline by 20% to 25% this year, it now reckons they will be flat.
As a result, the Anglo-Swedish company reckons top line growth for 2022 will be in the "low twenties" per cent, up from the "high teens".
Core EPS, meanwhile, will grow in mid-to-high "twenties" per cent, which is unchanged from previous guidance and reflects AZ’s resolve to spend more on research and development than first planned.
Sales of the six months ended 30 June 2022 were up 43% at US$22.16bn, with core per share earnings matching that advance to US$3.61.
While the performance of the vaccines business stood out, the pharma group said the oncology franchise also performed strongly.
“Given the ongoing performance of our underlying business and the contribution of our COVID-19 medicines, we are updating our revenue guidance for 2022,” said chief executive Pascal Soriot.
“This has enabled us to increase our R&D investment in the exciting number of pipeline opportunities that can benefit patients and drive long-term sustainable growth for our company.”
In a separate announcement, the group said that former UBS vice chairman and current AZ independent director, Mark Demaré, will succeed Leif Johansson as the chairman of the FTSE 100’s biggest company.