|
|
|
|
|||||
|
|
|
AstraZeneca’s AZN second-quarter 2025 core earnings of $1.09 per American depositary share (ADS) came in line with the Zacks Consensus Estimate. Core earnings of $2.17 per share rose 10% year over year on a reported basis and 12% on a constant exchange rate (CER).
Total revenues of $14.46 billion rose 12% on a reported basis and 11% at CER, driven by higher product sales and alliance revenues from partnered medicines. Revenues beat the Zacks Consensus Estimate of $14.03 billion.
All growth rates mentioned below are on a year-over-year basis and at CER.
Among AstraZeneca’s various therapeutic areas, Oncology revenues were up 18%, while Cardiovascular, Renal and Metabolism (“CVRM”) product sales rose 3%. The Respiratory & Immunology (R&I) segment’s sales rose 12%. While Rare disease revenues rose 7%, sales of Vaccines & Immune (V&I) Therapies rose 54%. Sales of other medicines were down 9%.
Product sales rose 10% to $13.8 billion, as strong underlying demand trends for its products were partially offset by new manufacturer discounts under Medicare Part D redesign in the United States.
Alliance revenues include royalties and profit share from partnered medicines, such as Enhertu and Tezspire, in geographies where its partner books product sales. Alliance revenues rose 35% to $654 million, driven by continued revenue growth from partnered medicines.
Alliance revenues included $436 million from Daiichi Sankyo for Enhertu and $155 million of AstraZeneca’s share of gross profits in the United States from partner Amgen AMGN for Tezspire.
Alliance revenues also included $10 million from partner Daiichi Sankyo for Datroway and $27 million for Beyfortus. AZN records a 50% share of gross profits from Beyfortus’ sales in major ex-U.S. markets and 25% of brand revenues from the rest of the world markets received from partner Sanofi SNY. The company also records Beyfortus product sales from products supplied to partner Sanofi under the V&I Therapies segment.
Here, we have discussed the total revenues of its drugs by including Alliance revenues and Collaboration revenues within each revenue figure.
In Oncology, Tagrisso recorded revenues of $1.81 billion, up 12% year over year, on strong demand for all indications and in all regions, which more than offset the impact of Medicare Part D redesign and pricing pressure in some European markets. Tagrisso sales beat the Zacks Consensus Estimate as well as our model estimate of $1.75 billion.
Lynparza's total revenues rose 11% to $838 million, driven by increased market share/demand growth for all approved indications. The drug’s sales beat the Zacks Consensus Estimate of $810 million and our estimate of $788.7 million.
AstraZeneca markets Lynparza in partnership with Merck MRK. During the quarter, the company did not record any milestone payment from partner Merck related to the drug.
Imfinzi generated sales of $1.46 billion in the quarter, up 26%, driven by strong growth from launch in bladder and lung cancer indications, partially offset by mandatory price reductions in Japan. Imfinzi sales beat the Zacks Consensus Estimate of $1.37 billion and our estimate of $1.3 billion.
Sales of Calquence rose 10% to $872 million in the quarter. New breast cancer drug Truqap recorded $170 million in revenues in the second quarter of 2025 compared with $132 million in the previous quarter.
Newly approved drug Datroway, for which it has a partnership with Daiichi Sankyo, recorded revenues of $11 million in the quarter compared with $4 million in the first quarter, driven by encouraging initial launch uptake in the United States. The FDA approved the expanded use of Datroway for a second indication — non-small cell lung cancer in June.
In CVRM, Farxiga recorded product sales of $2.15 billion, up 10%, driven by continued demand growth across chronic kidney disease and heart failure. Farxiga sales beat the Zacks Consensus Estimate of $2.05 billion and our model estimate of $2.06 billion.
Brilinta/Brilique sales totaled $215 million in the reported quarter, down 38%, due to the generic launch in Europe and the United States in the second quarter.
New drug Wainua recorded $44 million in product sales during the quarter compared with $39 million in the previous quarter, driven by strong launch momentum in the United States and initial launch in ex-U.S. markets.
In R&I, Symbicort sales declined 1% to $715 million due to generic erosion in Europe and competition from triple therapy on the ICS/LABA class of medicines like Symbicort in China. The drug’s sales missed the Zacks Consensus Estimate and our model estimate of $726 million and $732.9 million, respectively.
Fasenra recorded sales of $502 million in the quarter, up 18% year over year, driven by strong demand growth and market share gains. The recent launch for the EGPA indication also benefited sales in some countries. The drug’s sales beat the Zacks Consensus Estimate as well as our model estimate of$467 million.
Breztri recorded sales of $283 million, up 20% year over year. Pulmicort sales declined 32% to $106 million.
Tezspire recorded total revenues of $261.0 million, up 65% year over year, driven by demand growth and launch uptake in multiple markets. Amgen records product sales in the United States, and AstraZeneca records its share of U.S. gross profits as Alliance revenues. AstraZeneca books product sales in markets outside the United States.
New product Airsupra generated $42 million in product sales in the second quarter, compared with $28 million in the previous quarter.
New lupus drug, Saphnelo, recorded sales of $167 million, up 48% year over year.
In the Rare Disease portfolio, Soliris sales fell 22% to $530 million due to conversion to Ultomiris and biosimilar erosion in Europe.
Ultomiris revenues amounted to $1.18 billion, up 23%, driven by patient demand, growth in neurology indications, geographic expansions in new markets and continued conversion from Soliris. The impact of Medicare Part D redesign was minimal in the second quarter.
In Other Medicines, sales of Nexium declined 11% to $201 million.
In V&I Therapies, AstraZeneca recorded $126 million in revenues from Beyfortus, which included alliance revenues mentioned earlier as well as sales of manufactured Beyfortus product to Sanofi.
AstraZeneca maintained its financial guidance for 2025.
It expects total revenues to grow by a high single-digit percentage at CER.
Core EPS is expected to increase by a low double-digit percentage.
AstraZeneca reported decent second-quarter results, as its earnings matched estimates and revenues beat the same. Sales of almost all key drugs, including Tagrisso, Lynparza, Imfinzi, Farxiga and Fasenra beat estimates. All these drugs have been driving AstraZeneca’s top-line growth over the past several quarters, backed by increasing demand trends. Newer drugs like Wainua, Airsupra, Saphnelo, Datroway (partnered with Daiichi Sankyo) and Truqap also contributed to top-line growth in the second quarter. AstraZeneca also announced an increase in its interim dividend by 3% to $1.03 per share.
Shares of the British drugmaker rose around 4% in pre-market trading on Tuesday in response to the strong top-line performance.
Year to date, the stock has risen 11.1% compared with the industry’s 3.1% increase.
AZN reaffirmed its 2025 guidance. Despite the potential impact from Part D redesign, AstraZeneca expects total revenues to grow by a high single-digit percentage at CER in 2025. Growth momentum in the Oncology and CVRM segments is expected to continue in 2025. However, in Rare Disease, though AstraZeneca expects growth in 2025, it will be at a slower pace than in 2024.
Backed by its new products and pipeline drugs, AstraZeneca believes it can post industry-leading top-line growth in the 2025-2030 period. AstraZeneca expects to generate$80 billion in total revenues by 2030, a significant increase from the $54 billion it generated in 2024. By the said time frame, AstraZeneca plans to launch 20 new medicines, with almost half of these already launched/approved. It believes that many of these new medicines will have the potential to generate more than $5 billion in peak-year revenues.
The company is also on track to achieve a mid-30s percentage core operating margin by 2026
Earlier this month, AZN announced plans to invest $50 billion by 2030 to boost manufacturing and R&D in the United States to expand domestic production in response to ongoing tariff pressures under President Donald Trump.
Currently, AstraZeneca has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AstraZeneca PLC price-consensus-chart | AstraZeneca PLC Quote
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
| 1 hour | |
| 1 hour | |
| 2 hours | |
| 2 hours | |
| 2 hours | |
| 3 hours | |
| 3 hours | |
| 4 hours | |
| 5 hours | |
| 6 hours | |
| 7 hours | |
| 9 hours | |
| Jul-29 | |
| Jul-29 | |
| Jul-29 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite