Pharmaceutical giant AstraZeneca increases earnings outlook due to strong take-up of cancer drugs

Including the impact of the Covid-19 sales hit, revenues lifted 5 per cent.

It said sales of cancer drugs surged 20 per cent in the first nine months of the year.

The result saw AstraZeneca increase its guidance for core earnings per share to grow by a “low double-digit to low-teens percentage” in 2023, compared with a previous forecast of high single-digit to low double-digit percentage growth.

It said total annual revenues, excluding Covid-19 medicines, are set to rise by a “low-teens percentage”, up from the previous guidance of low double-digit percentage.

Shares lifted 3 per cent following the update.

AstraZeneca revealed it saw zero sales of its Covid-19 vaccine in the three months to September 30 – the second quarter in a row of no revenues from the jab – which was developed with Oxford University to help protect people from the pandemic.

But Astra had always developed the jab, known as Vaxzevria, on a not-for-profit basis.

Commenting on the results, Sheena Berry, healthcare analyst at Quilter Cheviot, said: “AstraZeneca has delivered good momentum in the third quarter of the year with 13 per cent revenue growth excluding COVID-19 sales and a 9 per cent growth in earnings per share.

"The company has also raised its full year guidance on the back of this momentum, so 2023 is shaping up to be a profitable one for the pharmaceutical giant.

“The group’s main priority remains on reinvesting in the business with an additional seven pivotal trials initiated in Q3 (the third quarter of) 2023 and on track to initiate 30 over 2023.

"This is a strong pipeline and will position AstraZeneca strongly for the future.

"There are some slight risks, in that a couple of Enhertu breast trial readouts have been pushed to later than 2024, but we continue to expect a number of oncology readouts during the year so this is likely to be fairly minimal.

“AstraZeneca is also looking to play catch up in the anti-obesity market with Eccogene, which will help with the treatment of obesity, type-2 diabetes and other cardiometabolic conditions.

“All in all this is another solid set of results from AstraZeneca and it is showing why it is the leading pharmaceutical company in the UK.

"Future growth should continue to be driven by that strong pipeline and operational performance.”

Russ Mould, investment director at AJ Bell, said: “ “AstraZeneca continued to show its strong suit in oncology treatments with its third quarter update and this was the key driver behind an increase in profit guidance.

Mr Mould added: “The latest update will build confidence the company can sustain its recent momentum.”