Below is a comment from Neil Shah, Director of Research at Edison Group, on the release of AstraZeneca plc (LON:AZN) (NASDAQ:AZN)’s trading results this morning.
Astrazeneca Delivers A Strong Set Of Results
Neil Shah, Director of Research Edison Group:
“As one of the world’s most discussed companies in recent months, it is no surprise that AstraZeneca has delivered a strong set of results for Q1 this year. The company delivered significant revenue growth of 15% in the quarter to $7,320m, excluding the contribution from the COVID-19 vaccine. Product Sales grew by 15% to $7,257m, driven primarily by the performances of new medicines across Oncology and BioPharmaceutical. This included sales of Tagrisso, its new revolutionary cancer drug.
“Globally, new medicines represented 53% of total revenue (Q1 2020: 47%). Q1 2020 benefitted from a low-to-mid single-digit percentage increase in sales following short-term inventory increases in the distribution channel, an indirect effect of the COVID-19 pandemic. The company saw a significant increase in its emerging markets business with 14% growth to $2,592m. In the US, Total Revenue increased by 10% to $2,310m and in Europe by 28% to $1,546m.
“With worldwide inoculations likely to accelerate over the next few months, signs for AstraZeneca are positive. As the impact of the pandemic begins to dissipate the company anticipates an acceleration of performance for the second half of 2021. Having delivered one of the most important vaccines in human history, it is no surprise that the company has delivered such a solid set of results. In addition, with non-COVID medication making up a significant portion of this growth, the company is well-positioned for a high-growth year as 2021 continues.”