Shares of AstraZeneca were up in Thursday trading after the drug maker beat expectations in its half-year results, as strong sales of new drugs helped offset declining revenue from older treatments.
The drug maker reported that in the first half of the year revenue from new medicines increased 69% at constant exchange rates, driven by its oncology treatments.
Sales of lung cancer drug Tagrisso rose 82% to $422 million in the second quarter, said AstraZeneca, while sales of Imfinzi, also a cancer medicine, doubled quarter-on-quarter to $122 million.
Tagrisso was 8% ahead of expectations while Imfinzi was 18% ahead, Berenberg said. “Key growth drivers are performing well and a return to sales growth is in sight,” the bank said.
Overall, product sales declined 1% at constant exchange rates in the quarter, said AstraZeneca. However, a 19% increase in sales from its oncology, new CVRM (cardiovascular, renal and metabolism), and respiratory portfolio at constant exchange rates helped to make up for dwindling revenue from its other drugs, it said. Such other drugs include blockbuster cholesterol medication Crestor that is under pressure from generic competition in the European Union and Japan.
“The strategy that we put in place a few years ago–rebuilding our pipeline, launching new products–is now delivering very strong commercial sales results,” said Chief Executive Pascal Soriot.
Mr. Soriot singled out China–where the company reported a 37% increase in sales in the second quarter–as a region of strong growth. The head of the pharmaceutical major said that he expects continued expansion in the country, with the market eventually eclipsing the EU in size.
Mr. Soriot also said that the company didn’t plan to raise drug prices in the U.S. in the second half of the year.
The company joins other large drug makers like Roche Holding, Merck KGaA and Takeda Pharmaceutical Co which said they don’t plan prices hikes in the near-term.
Last Friday, Dow Jones Newswires first reported that Roche and Merck planned no price increases in the U.S. for the rest of 2018. On Tuesday, Dow Jones Newswires reported Takeda would follow suit.
Astra said that profit before tax for the quarter ended June 30 was $412 million, compared with $492 million in the previous-year period. Revenue rose 2.1% to $5.16 billion, ahead of analysts expectations of $5.11 billion, according to FactSet.
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