AstraZeneca has increased its annual earnings forecast, boosted by strong demand for its cancer drugs, and has ventured into the thriving anti-obesity market with a deal that may cost up to $2 billion. The company reported third-quarter profit and revenue slightly above analyst expectations, with sales of its blockbuster cancer treatments and emerging market demand offsetting the loss of sales for its COVID-19 vaccine and therapy.
To further enhance its pipeline in the rapidly growing anti-obesity market, AstraZeneca has acquired an exclusive license for an oral weight-loss drug candidate from China's Eccogene. The deal, valued at approximately $2 billion, demonstrates the company's commitment to capitalizing on one of the fastest-growing pharmaceutical markets and expanding its offerings to address global health challenges.
Pascal Soriot, the CEO of AstraZeneca, expressed enthusiasm about the agreement, stating, "I am excited about the acceleration of our cardiometabolic and obesity pipeline with today's licensing agreement." This move highlights AstraZeneca's focus on developing innovative solutions for cardiometabolic diseases and obesity, which are significant public health concerns worldwide.
In the third quarter, AstraZeneca reported core profit per share of $1.73, surpassing the consensus expectation of $1.69. The company's revenue of $11.49 billion also exceeded the consensus forecast of $11.47 billion. As a result, AstraZeneca has revised its annual forecast, now anticipating a low double-digit to low-teens percentage increase in core earnings per share for the year, compared to the previous projection of high single-digit to low double-digit growth. The company also expects total revenue to rise by a mid single-digit percentage, compared to the earlier forecast of low-to-mid single-digit growth.
AstraZeneca's consistently robust performance can be attributed to the success of its portfolio of medicines. Nine of its products generated more than $1 billion in revenue during the first nine months of this year. This impressive performance has cemented AstraZeneca's position as the largest company in the UK by market capitalization, valued at £159 billion ($195 billion).
While the company saw a 1% increase in sales in China (excluding COVID products), it fell short of the 7% growth witnessed in the second quarter. China accounted for 13% of AstraZeneca's revenue last year. The slowdown in growth is attributed to reduced promotional activities following the Chinese government's anti-corruption campaign, which cracked down on bribery within the healthcare industry. However, AstraZeneca remains optimistic, with CEO Pascal Soriot noting that demand has started to rebound in October, indicating a temporary impact rather than a long-term setback.
AstraZeneca's latest earnings report underscores its strong momentum and strategic moves to expand its presence in key therapeutic areas. With the acquisition of the weight-loss drug candidate and the company's continued success in the cancer drug market, AstraZeneca is well-positioned to drive future growth and make meaningful contributions to global healthcare.