AstraZeneca put the spotlight on its near-20% revenue growth during first-quarter earnings, driven in part by its success in emerging markets.
Executives on the company’s analyst call discussed development plans for its early-stage obesity drug, its selective approach to vaccine investments and defended the company against criticisms that it was spreading itself too thin across various drug modalities. Here are six key takeaways:
Revenues beat analyst expectations: AstraZeneca’s total Q1 sales jumped to $12.7 billion, besting analyst consensus of $11.8 billion. Besides strong demand in both the US and Europe, business “grew substantially in the emerging markets, and growth was especially pronounced outside of China,” CEO Pascal Soriot said, according to an AlphaSense transcript.
Double-digit growth in emerging markets: In China, Q1 revenues grew 13% to $1.75 billion, while ex-China emerging market revenues increased 40% in the same period to $1.98 billion. “Across the region, we are speeding up approval in many emerging markets, so we launch new products earlier than before,” Soriot said.
Eight Phase 3 trials started in 2024: The studies span a range of therapeutic areas including oncology, rare diseases and respiratory diseases. They include the TROPION-Lung10 trial of Daiichi Sankyo-partnered TROP2-directed antibody-drug conjugate Dato-DXd plus PD-1 and TIGIT bispecific rilvegostomig in advanced non-squamous NSCLC patients with high PD-L1 expression. In October, Dato-DXd missed analysts’ efficacy expectations in a Phase 3 lung cancer test. Responding to investor skepticism, head of oncology R&D Susan Galbraith said “what underpins [our] confidence [in TROPION-Lung10] is both the compatibility with IO that we’ve seen in different settings, and the potential for some added efficacy with the addition of the TIGIT mechanism of action.”
Multiple doses of obesity drug could go forward: “We’re uniquely well positioned to combine this orally available molecule [ECC5004] with other molecules in our portfolio that help address interrelated diseases,” said Sharon Barr, head of biopharmaceuticals R&D. “So we may want one dose that would be compatible for fixed-dose combinations and another dose that would be more compatible for additional weight loss in obesity conditions,” she added. AstraZeneca licensed the GLP-1 drug from Chinese biotech Eccogene for $185 million upfront.
Soriot argues recent portfolio expansions necessary: “We are now a $50 billion company, so you really need a portfolio to continue growing,” Soriot said when asked whether AstraZeneca was spreading itself too thin with recent investments into vaccines, cell therapy and radioligands. Soriot added it was important that the company not be dependent on two or three projects. In March, the UK pharma purchased radiopharmaceutical company Fusion Pharma for $2 billion upfront and up to $400 million in contingent value rights.
Vaccine focus is designed to fit with other pursuits: “On the vaccine front, I think there’s sometimes a misperception of what we’re trying to do,” Soriot said. “We’re not trying to build a vaccine business like vaccine companies have — we’re actually targeting vaccines and antibodies that will be synergistic to our oncology and respiratory products,” he added. In December 2023, the company said it would acquire Icosavax and its late-stage RSV vaccine candidate for $838 million upfront.