AstraZeneca (LON:AZN) announced on Thursday that it saw a “very strong” fourth-quarter performance, boosted by new medicines. As a result, the drug maker has emphasised its return to growth as it meets its guidance.
Product sales growth for the fourth-quarter jumped 5% to $5.77 billion.
For the full financial year, revenue dropped 2% to $22.1 billion and product sales increased 4% to $21.05 billion. This remains in-line with guidance of a low-single-digit growth.
Moreover, earnings per share fell 19% to $3.46 per share, which is towards the upper end of guidance for earnings of $3.30 to $3.50 per share.
Core earnings were up 22% to $1.58 per share.
Oncology sales soared 50% to $6.04 billion as the performance of new drugs led growth.
For the next financial year, AstraZeneca anticipates that core operating profit will increase, ahead of product sales, by a mid-teens percentage. Additionally, capital expenditure is set to be broadly stable. Core operating expenses are expected to increase by a low single-digit percentage.
In October, AstraZeneca announced that its third-quarter earnings had dropped and underscored its Brexit contingency plan.
Chief Executive Officer Pascal Soriot commented on the results:
“Closing the year with another strong quarter, our performance confirmed that AstraZeneca has returned to growth. Our new medicines performed particularly well across the therapy areas and the Emerging Markets business went from strength to strength. 2019 will be a year of focus on continued pipeline delivery and flawless commercial execution. The performance of our new medicines demonstrated the ability of our commercial teams to convert the pipeline into successful medicines.”
“As we recently entered a new phase in our strategic development, we have refined our organisation to position ourselves for the next phase of our journey. The changes are designed to further integrate research and development and accelerate decision-making and the launches of new medicines, consolidating what we believe is already one of the most exciting and productive pipelines in the industry. We are also enhancing our commercial units to increase collaboration with our R&D organisation, enabling greater commitment to our main therapy areas; we want AstraZeneca to be more agile, collaborative and focused as we enter a period of sustained growth.”
“Our strategy and plans remain unchanged, with sales growth and a focus on cost management anticipated to drive growing operating profit. I’m pleased that we are fully on track to meet these commitments as we build a sustainable level of growth and a pipeline that is benefitting more and more patients around the world.”
Earlier this month, AstraZeneca’s treatment for a rare disease was granted orphan status. During the 2018 financial year, it sold its US rights to its respiratory tract infection treatment to the Swedish company Sobi. Additionally, it sold its European rights to an acid-reflux medicine to Grunenthal.
At 09:23 GMT Thursday, shares in AstraZeneca plc (LON:AZN) were trading at +4.07%.
