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AstraZeneca (NASDAQ:AZN) posted around 5% Y/Y higher revenues to $11.5B for Q3, missing consensus estimates. The top-line was weighed down by the continued decline in COVID-19 medicines, while revenue from non-COVID drugs rose 12%.
The biotechnology firm saw double-digit growth in its oncology, cardiovascular, renal and metabolic (CVRM), and rare disease therapeutics. Among its core portfolio, oncology drugs Imfinzi and Tagrisso recorded 53% and 5% higher sales to $1.1B and $1.46B, respectively. Diabetes drug Farxiga jumped 41% to $1.5B, and hyperkalemia medicine Lokelma rose 30% to $102M.
Notably, AstraZeneca (AZN) also entered a significant licensing agreement to accelerate its obesity pipeline and bring competition to Novo Nordisk’s (NVO) Wegovy and Eli Lilly’s (LLY) Zepbound in a fast-growing category.
The company has entered into an exclusive licensing deal for China-based Eccogene’s ECC5004 drug candidate, aimed at treating obesity, type-2 diabetes and other cardiometabolic conditions. ECC5004 has shown promising preliminary results from its phase 1 trial.
AstraZeneca (AZN) will pay $185M up front under the deal to Eccogene, and up to $1.825B in future milestone-linked payments and tiered royalties on sales.
Gross margins for Q3 were marginally up at 81%, thanks to a favorable mix of oncology and rare disease drug sales and reduced reliance on low-margin COVID medicines. However, an increasing mix of products with profit-sharing arrangements weighed on margins.
With strong momentum from non-COVID drug sales behind it, AstraZeneca (AZN) raised its guidance for 2023 to a mid single-digit increase in total revenues (previously low-to-mid single-digit).
Excluding COVID medicines, revenues are set to increase by the low-teens (previously low double-digit). Core EPS is expected to rise by low double-digit to low-teens (previously high single-digit to low double-digit).
Shares of the U.K.-based biotech firm were up 2.28% premarket on Thursday
