Picture supply: Getty Pictures
In the present day (6 February) was good for shareholders of AstraZeneca (LSE: AZN). The FTSE 100‘s largest firm vaulted 5.9% greater to 11,786p after dropping a robust set of earnings.
This helped push the Footsie as much as 8,766, a file intraday excessive. Rates of interest had been additionally lower in the present day, bringing down the price of borrowing to 4.5%. So extra positive factors may very well be forward.
I added to my holding within the pharma large in early November when the inventory dipped below 10,000p. This adopted information that some executives had been below investigation in China, which I suspected won’t matter 5 years from now. We additionally obtained information about that in the present day.
Sturdy development and surging earnings
In 2024, AstraZeneca’s income jumped 21% yr on yr to $54.1bn on a continuing forex foundation. That was forward of steerage for high-teens development and higher than what analysts had been anticipating ($53.1bn).
Gross sales development was robust throughout the board, with its oncology (up 24%) and respiratory and immunology (24%) divisions main the best way. Most cancers therapies account for round 41% of whole gross sales.
areas, Europe (up 26% at fixed alternate charges) and rising markets excluding China (32%) grew the quickest. But its largest market, the US, recorded spectacular 22% income development final yr.
On the underside line, core earnings per share (EPS) spiked 19% to $8.21, forward of forecasts ($8.15), whereas pre-tax earnings surged 38% to $8.7bn.
CEO Pascal Soriot commented: “This yr marks the start of an unprecedented, catalyst-rich interval for our firm, an necessary step on our Ambition 2030 journey to ship $80bn whole income by the top of the last decade.”
Whereas development’s understandably anticipated to be slower in 2025, issues nonetheless look stable. Income’s set to rise by a excessive single-digit share, with EPS rising by a low double-digit share. It wouldn’t shock me if these figures find yourself a bit greater this time subsequent yr.
Lastly, the dividend was hiked 7% final yr, although the forecast yield is simply 2.2%.
Ocean-deep medicine pipeline
By my rely, AstraZeneca had 14 blockbuster medicine in 2024, which implies every one generated over $1bn in annual gross sales. However a handful of others are additionally getting nearer.
One motive I’m a shareholder is the corporate’s deep pipeline of revolutionary therapies and potential future blockbusters. Final yr, it delivered 9 constructive late-stage research and anticipates one other seven potential new medicines this yr.
This provides the corporate many photographs on aim, although naturally some will miss the goal. Late-stage trial failures are an unavoidable threat right here, as is opposed regulation. Donald Trump’s well being secretary, the Massive Pharma critic Robert F Kennedy, additionally stays a wildcard.
In the meantime, a worldwide commerce struggle triggered by Trump’s tariffs would possibly see AstraZeneca dealing with a bit extra regulatory scrutiny in China. Talking of which…
A drop within the ocean
What about China then? Nicely, this matter pertains to unpaid importation taxes on two most cancers medicine. However the excellent news is that the corporate sees the high quality for this being between $900k and $4.5m.
Whereas it’s clearly not ideally suited to be within the dangerous books with Chinse authorities, this quantity is small potatoes for a worldwide pharma large.
As a shareholder, I’m proud of every part I’ve learn right here. However I’ll wait for one more dip earlier than shopping for any extra shares.
Picture supply: Getty Pictures
In the present day (6 February) was good for shareholders of AstraZeneca (LSE: AZN). The FTSE 100‘s largest firm vaulted 5.9% greater to 11,786p after dropping a robust set of earnings.
This helped push the Footsie as much as 8,766, a file intraday excessive. Rates of interest had been additionally lower in the present day, bringing down the price of borrowing to 4.5%. So extra positive factors may very well be forward.
I added to my holding within the pharma large in early November when the inventory dipped below 10,000p. This adopted information that some executives had been below investigation in China, which I suspected won’t matter 5 years from now. We additionally obtained information about that in the present day.
Sturdy development and surging earnings
In 2024, AstraZeneca’s income jumped 21% yr on yr to $54.1bn on a continuing forex foundation. That was forward of steerage for high-teens development and higher than what analysts had been anticipating ($53.1bn).
Gross sales development was robust throughout the board, with its oncology (up 24%) and respiratory and immunology (24%) divisions main the best way. Most cancers therapies account for round 41% of whole gross sales.
areas, Europe (up 26% at fixed alternate charges) and rising markets excluding China (32%) grew the quickest. But its largest market, the US, recorded spectacular 22% income development final yr.
On the underside line, core earnings per share (EPS) spiked 19% to $8.21, forward of forecasts ($8.15), whereas pre-tax earnings surged 38% to $8.7bn.
CEO Pascal Soriot commented: “This yr marks the start of an unprecedented, catalyst-rich interval for our firm, an necessary step on our Ambition 2030 journey to ship $80bn whole income by the top of the last decade.”
Whereas development’s understandably anticipated to be slower in 2025, issues nonetheless look stable. Income’s set to rise by a excessive single-digit share, with EPS rising by a low double-digit share. It wouldn’t shock me if these figures find yourself a bit greater this time subsequent yr.
Lastly, the dividend was hiked 7% final yr, although the forecast yield is simply 2.2%.
Ocean-deep medicine pipeline
By my rely, AstraZeneca had 14 blockbuster medicine in 2024, which implies every one generated over $1bn in annual gross sales. However a handful of others are additionally getting nearer.
One motive I’m a shareholder is the corporate’s deep pipeline of revolutionary therapies and potential future blockbusters. Final yr, it delivered 9 constructive late-stage research and anticipates one other seven potential new medicines this yr.
This provides the corporate many photographs on aim, although naturally some will miss the goal. Late-stage trial failures are an unavoidable threat right here, as is opposed regulation. Donald Trump’s well being secretary, the Massive Pharma critic Robert F Kennedy, additionally stays a wildcard.
In the meantime, a worldwide commerce struggle triggered by Trump’s tariffs would possibly see AstraZeneca dealing with a bit extra regulatory scrutiny in China. Talking of which…
A drop within the ocean
What about China then? Nicely, this matter pertains to unpaid importation taxes on two most cancers medicine. However the excellent news is that the corporate sees the high quality for this being between $900k and $4.5m.
Whereas it’s clearly not ideally suited to be within the dangerous books with Chinse authorities, this quantity is small potatoes for a worldwide pharma large.
As a shareholder, I’m proud of every part I’ve learn right here. However I’ll wait for one more dip earlier than shopping for any extra shares.
