UK and Sweden multinational pharmaceutical company AstraZeneca forecasts sales growth in 2022 on Thursday after recording higher-than-expected fourth-quarter profits.
However, biotechnology companies have warned that revenues will decline as sales of COVID-19 products decline, and that the gross margin for these products will be lower than the company’s average.
Pharmaceuticals recorded annual sales of $ 37.4 billion in Q4 results (Annual sales of $ 37.4 billionpdf), An increase of 38 percent from the previous year.
Part of the revenue growth is due to $ 4 billion in sales of the COVID-19 vaccine developed at Oxford University.
Last quarter sales were up 62% to $ 12 billion. In 2022, AstraZeneca predicts that Group-wide sales will be “a high percentage of teens.”
However, pharmaceutical companies have warned that COVID-19’s earnings will decline at a “low to moderate rate in their twenties.”
“Total revenue from COVID-19 pharmaceuticals is expected to decline at a rate of mid to mid-20s, and the decline in Vaxzevria sales is expected to be partially offset by the increase in Evusheld sales,” the company said. Says.
The US Food and Drug Administration (FDA) Emergency use authorization On December 8th for Evusheld. This is the only antibody therapy approved in the United States for the treatment of prophylactic COVID-19.
“Most of the vaccine revenues in 2022 are expected to come from the first contract. The gross margin for COVID-19 medicines is expected to be lower than the company’s average,” said Astra Zenica.
According to Refinitiv IBES data, 2022 analysts currently estimate earnings per share of $ 6.68 and revenue of $ 42.73 billion.
AstraZeneca announced plans to launch COVID-19 shots with “moderate profitability” in November after previously stating that it would not benefit from the COVID-19 vaccine during a pandemic.
“Limited benefits” said it offsets costs associated with antibody drugs developed to prevent and treat COVID-19, a disease caused by the CCP (Chinese Communist Party) virus.
However, the company said low-income countries will continue to be vaccinated on a non-profit basis.
Pascal Soriot, Chief Executive Officer of AstraZeneca, said:
“We also fulfilled our promise of widespread and equitable access to the COVID-19 vaccine, which was released in 2.5 billion doses to supply worldwide,” he said.
“Growth is balanced across strategic focus areas, with double-digit growth in all major regions, including emerging markets, despite headwinds in China.”
“This means we are confident in our long-term growth and profitability, along with the transformational acquisition of Alexion. We are increasing dividends to our shareholders after the milestone year of 2021. “Soriot said.
Citing preliminary data from ongoing clinical trials, AstraZeneca received a COVID-19 vaccine called Vaxzevria in January as a third boost to individuals previously vaccinated with any AstraZeneca. If so, he said it produced an antibody response to the Omicron variant of the virus. Shot or mRNA jab.
Vaxzevria has not yet been approved by US regulatory agencies.
The AstraZeneca company said it plans to submit the data to health regulators for approval for use as a global third shot. However, the AstraZeneca vaccine faces scrutiny regarding its efficacy data in relation to potential side effects such as blood clots.
As of 11:21 AM Greenwich Mean Time on Thursday, AstraZeneca’s share price rose 0.97% to $ 57.20.