AZN AstraZeneca PLC

Strong momentum in FY 2024 with Total Revenue and Core EPS up 21% and 19% respectively

AstraZeneca:

Revenue and EPS summary

 

 

FY 2024

% Change

Q4 2024

% Change

$m

Actual

CERi

$m

Actual

CER

- Product Sales

50,938

16

19

13,362

18

19

- Alliance Revenue

 

2,212

55

55

714

68

69

- Collaboration Revenue

923

56

54

815

>2x

>2x

Total Revenue

 

54,073

18

21

14,891

24

25

Reported EPS

$4.54

18

29

$0.97

56

71

Coreii EPS

$8.21

13

19

$2.09

44

49

Financial performance for FY 2024 (Growth numbers at constant exchange rates)

Total Revenue up 21% to $54,073m, driven by a 19% increase in Product Sales, continued growth of partnered medicines (Alliance Revenue) and the achievement of sales-based milestones (Collaboration Revenue)

Total Revenue growth from Oncology was 24%, CVRM 20%, R&I 25%, V&I 8% and Rare Disease 16%

Core EPS increased 19% to $8.21

Second interim dividend declared of $2.10 per share, making a total annual dividend declared for FY 2024 of $3.10 per share, an increase of 7%. Dividend to be further increased in FY 2025

Guidance for FY 2025: Total Revenue is expected to increase by a high single-digit percentage and Core EPS is expected to increase by a low double-digit percentage, both at CER

Pascal Soriot, Chief Executive Officer, AstraZeneca, said:

“Our company delivered a very strong performance in 2024 with Total Revenue and Core EPS up 21% and 19% respectively. We also delivered nine positive high value Phase III studies in the year, which coupled with increasing demand for our medicines in all key regions, will help sustain our growth momentum into 2025.

This year marks the beginning of an unprecedented, catalyst-rich period for our company, an important step on our Ambition 2030 journey to deliver $80 billion Total Revenue by the end of the decade. In 2025 alone, we anticipate the first Phase III data for seven new medicines, along with several important new indication opportunities for our existing medicines.

We are also investing in and making significant progress with transformative technologies that have the potential to drive our growth well beyond 2030, many of which have now entered pivotal trials.”

Key milestones achieved since the prior results announcement

Positive read-outs for Truqap in combination with abiraterone and androgen deprivation therapy in PTEN-deficient de novo metastatic hormone-sensitive prostate cancer (CAPItello-281) and Tagrisso with or without chemotherapy in resectable early-stage EGFRm NSCLC (NeoADAURA)

US approvals for Imfinzi in limited-stage small cell lung cancer (ADRIATIC), Calquence in combination with bendamustine and rituximab in mantle cell lymphoma (ECHO), Datroway (datopotamab deruxtecan) in HR+ HER2- metastatic breast cancer (TROPION-Breast01) and Enhertu in chemotherapy-naïve HER2-low and -ultralow metastatic breast cancer (DESTINY-Breast06). EU approvals for Tagrisso in unresectable EGFRm NSCLC (LAURA) and Kavigale for prevention of COVID-19 (SUPERNOVA). Japan approvals for Imfinzi in endometrial cancer (DUO-E), Lynparza plus Imfinzi in pMMR endometrial cancer (DUO-E), Calquence tablet formulation in chronic / small lymphocytic leukaemia, Datroway in HR+ HER2- metastatic breast cancer, Fasenra in EGPA (MANDARA) and Kavigale for prevention of COVID-19. China approvals for Lynparza in gBRCAm HER2- early breast cancer (OlympiA), Orpathys in locally advanced or metastatic MET Exon 14 NSCLC (NCT04923945)

Guidance

The Company issues its Total Revenue and Core EPS guidance for FY 2025 at CER, based on the average foreign exchange rates through 2024.

 

Total Revenue is expected to increase by a high single-digit percentage Core EPS is expected to increase by a low double-digit percentage

 

The Core Tax rate is expected to be between 18-22%

The Company is unable to provide guidance on a Reported basis because it cannot reliably forecast material elements of the Reported results, including any fair value adjustments arising on acquisition-related liabilities, intangible asset impairment charges and legal settlement provisions. Please refer to the cautionary statements section regarding forward-looking statements at the end of this announcement.

Currency impact

If foreign exchange rates for February 2025 to December 2025 were to remain at the average rates seen in January 2025, it is anticipated that Total Revenue in FY 2025 would incur a low single-digit percentage adverse impact compared to the performance at CER, and Core EPS would incur a mid-single-digit percentage adverse impact. The Company’s foreign exchange rate sensitivity analysis is provided in Table 17.

Capital allocation

In FY 2025, the Company intends to increase the annual dividend declared to $3.20 per share. The Company also expects to increase capital expenditureiii by approximately 50%, driven by manufacturing expansion projects and investment in IT systems, to support portfolio growth and build capacity for transformative technologies.

China

In relation to the illegal drug importation allegations, in January 2025, AstraZeneca received a Notice of Transfer to the Prosecutor and an Appraisal Opinion from the Shenzhen City Customs Office regarding suspected unpaid importation taxes amounting to $0.9 million. To the best of AstraZeneca’s knowledge, the importation taxes referred to in the Appraisal Opinion relate to Imfinzi and Imjudo. A fine of between one and five times the amount of unpaid importation taxes may also be levied if AstraZeneca is found liable. AstraZeneca continues to fully cooperate with the Chinese authorities.

In December 2024 AstraZeneca announced the appointment of Iskra Reic as Executive Vice President, International, which encompasses China, Asian and Eurasian markets, Middle East & Africa, Latin America, Australia & New Zealand. Iskra succeeds Leon Wang who is on extended leave from the Company while under investigation in China.

Table 1: Key elements of Total Revenue performance in Q4 2024

% Change

Revenue type

 

$m

Actual %

CER %

 

 

Product Sales

13,362

18

19

 

 

Alliance Revenue

 

714

68

69

 

$392m Enhertu (Q4 2023: $281m)

$133m Tezspire (Q4 2023: $80m)

$161m Beyfortus (Q4 2023: $41m)

Collaboration Revenue

815

>2x

>2x

 

$600m Lynparza (Q4 2023: $245m)

$111m Beyfortus (Q4 2023: $27m)

$100m Koselugo (Q4 2023: nil)

Total Revenue

 

14,891

24

25

 

 

Therapy areas

$m

Actual %

CER %

 

 

Oncology

6,344

27

29

 

Tagrisso up 20% (21% at CER), Calquence up 20%, Enhertu up 48% (54% at CER)

CVRM

3,138

16

17

 

Farxiga up 21% (22% at CER), Lokelma up 35%

R&I

 

2,127

27

28

 

Breztri up 29%. Saphnelo up 65%, Tezspire up 86% (85% at CER), Symbicort up 31% (33% CER)

V&I

 

651

58

55

 

Beyfortus Total Revenue up >3x

Rare Disease

 

2,377

21

22

 

Ultomiris up 32% (33% at CER), partially offset by decline in Soliris of 24% (22% at CER), Strensiq up 38% (37% at CER) and Koselugo up >3x

Other Medicines

 

254

(7)

(6)

 

 

Total Revenue

 

14,891

24

25

 

 

Regions

 

$m

Actual %

CER %

 

 

US

6,532

28

28

 

Product Sales up 25%

Emerging Markets

 

3,134

13

19

 

 

- China

1,364

(1)

(3)

 

Decline primarily due to low rates of seasonal respiratory viral infections, and impact from year-end hospital budget dynamics

- Ex-China Emerging Markets

 

1,770

26

42

 

 

Europe

 

3,948

37

35

 

Product Sales up 20% (18% at CER)

Established RoW

 

1,277

1

2

 

 

Total Revenue

 

14,891

24

25

 

 

Key alliance medicines

Combined sales of Enhertu, recorded by Daiichi Sankyo Company Limited (Daiichi Sankyo) and AstraZeneca, amounted to $3,754m in FY 2024 (FY 2023: $2,566m)

Combined sales of Tezspire, recorded by Amgen and AstraZeneca, amounted to $1,219m in FY 2024 (FY 2023: $653m)

Table 2: Key elements of financial performance in Q4 2024

Metric

Reported

Reported change

Core

Core change

 

Commentsiv

Total Revenue

$14,891m

24% Actual 25% CER

$14,891m

24% Actual 25% CER

 

See Table 1 and the Total Revenue section of this document for further details

Product Sales Gross Margin

80%

Stable Actual +1pp CER

79%

-1pp Actual Stable CER

 

Variations in Product Sales Gross Margin can be expected between periods, due to product seasonality, foreign exchange fluctuations and other effects

R&D

expense

$4,677m

52% Actual 52% CER

$3,573m

23% Actual 22% CER

 

Increased investment in the pipeline

Core R&D-to-Total Revenue ratio of 24% (Q4 2023: 24%) Reported R&D includes $753m impairment recorded against the vemircopan (ALXN2050) intangible asset

SG&A expense

$5,410m

1% Actual 1% CER

$4,275m

6% Actual 7% CER

 

Market development for recent launches and pre-launch activities Core SG&A-to-Total Revenue ratio of 29% (Q4 2023: 34%)

Other operating income and expensev

$100m

-7% Actual -6% CER

$101m

-7% Actual -6% CER

 

 

Operating Margin

14%

+3pp Actual +4pp CER

28%

+5pp Actual +6pp CER

 

See commentary above on Gross Margin, R&D, SG&A and Other operating income and expense

Net finance expense

$365m

9% Actual 8% CER

$310m

20% Actual 20% CER

 

Recent debt issued at higher interest rates Decrease in interest income Higher level of Net debt

Tax rate

10%

+17pp Actual +15pp CER

16%

+7pp Actual +7pp CER

 

Variations in the tax rate can be expected between periods

EPS

$0.97

56% Actual 71% CER

$2.09

44% Actual 49% CER

 

Further details of differences between Reported and Core are shown in Table 12

Table 3: Pipeline highlights since prior results announcement

Event

Medicine

Indication / Trial

Event

Regulatory approvals and other regulatory actions

Tagrisso

EGFRm NSCLC (Stage III

unresectable) (LAURA)

Regulatory approval (EU, CN)

Imfinzi

Limited-stage SCLC (ADRIATIC)

Regulatory approval (EU)

Imfinzi

Advanced endometrial cancer

Regulatory approval (JP)

Calquence

Tablets for chronic lymphocytic leukaemia

Regulatory approval (JP)

Calquence

Mantle cell lymphoma (1st-line) (ECHO)

Regulatory approval (US)

Lynparza + Imfinzi

Advanced endometrial cancer with mismatch repair proficiency

(DUO-E)

Regulatory approval (JP)

Lynparza

gBRCAm HER2- eBC (OlympiA)

Regulatory approval (CN)

Enhertu

HR+ HER2-low and -ultralow mBC

(DESTINY-Breast06)

Regulatory approval (US)

Datroway

HR+ HER2- mBC (TROPION-Breast01)

Regulatory approval (JP, US)

Orpathys

MET exon 14 skipping altered NSCLC (NCT04923945)

Regulatory approval (CN)

Fasenra

EGPA (MANDARA)

Regulatory approval (JP)

Kavigale

Prevention of COVID-19 (SUPERNOVA)

Regulatory approval (EU, JP)

 

 

 

Regulatory submissions or acceptances*

Imfinzi

Muscle-invasive bladder

cancer (NIAGARA)

Regulatory submission (US, JP)

Imfinzi + Imjudo

NSCLC (1st-line) (POSEIDON)

Regulatory submission (CN)

Calquence

Chronic lymphocytic leukaemia (1st-line) (AMPLIFY)

Regulatory submission (EU)

Datroway

EGFRm NSCLC (later line) (TROPION-Lung05)

Regulatory submission (US)

Tezspire

Severe uncontrolled asthma (NAVIGATOR/

DIRECTION)

Regulatory submission (CN)

Koselugo

Neurofibromatosis type 1 adult (KOMET)

Regulatory submission (EU, JP)

 

 

 

Phase III / registrational data readouts and other developments

Tagrisso

Resectable early-stage EGFRm NSCLC (NeoADAURA)

Primary endpoint met

Truqap

PTEN-deficient de novo metastatic hormone-sensitive prostate cancer (CAPItello-281)

Primary endpoint met

 

 

 

 

*US, EU and China regulatory submission denotes filing acceptance

Other pipeline updates

In January 2025, the vemircopan (ALXN2050) Phase II development programme was terminated. The decision was based on safety and efficacy data from Phase II trials.

Upcoming pipeline catalysts

For recent trial starts and anticipated timings of key trial readouts, please refer to the Clinical Trials Appendix, available on www.astrazeneca.com/investor-relations.html.

Sustainability highlights

The Company convened an event on health equity for investors and analysts in November that detailed AstraZeneca’s health equity strategy, which is embedded from the Company’s science through to healthcare delivery and community engagement.

At the end of 2024, the Company’s cumulative reduction in Scope 1 and 2 greenhouse gas (GHG) emissions was 77.5% from the 2015 baseline.

Conference call

A conference call and webcast for investors and analysts will begin today, 6 February 2025, at 11:00 UK time. Details can be accessed via astrazeneca.com.

Reporting calendar

The Company intends to publish its Q1 2025 results on 29 April 2025.

To read AstraZeneca's Full Year and Q4 2024 Financial Results press release in full, click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250205200649/en/

Global Media Relations team global-mediateam@astrazeneca.com +44 (0)1223 344 800