AstraZeneca goes for growth with new drugs as COVID sales wane
Its shares rose 5% to be the second-best performer on London's blue-chip FTSE 100.
LONDON (Reuters) - AstraZeneca (AZN.L) on Thursday forecast growth in 2023 earnings and revenue as the British drug maker seeks to offset declining sales of COVID-19 medicines with its cancer, metabolic and rare disease drugs.
Its shares rose 5% to be the second-best performer on London's blue-chip FTSE 100 (.FTSE) index in early trade, on track for their best day in a year.
CEO Pascal Soriot said the firm was on a path to deliver at least 15 new medicines this decade. The company also predicted a return to growth in China, one of its key markets, after reporting a second consecutive quarter of growth even as prices remain under pressure.
"Based on our progress in developing our existing and new medicines, we move into 2023 very much on track to deliver our industry-leading growth ambitions for 2025, but also beyond until 2030,” Soriot told a news briefing.
The 2023 guidance helped allay some analysts' concerns that profits would be eroded by higher expenses as the company prepares for a flurry of clinical trials and drug launches.
"We think that given the concerns around margins going into results, we think this result/guide is good," Barclays analyst Emily Field said, noting the earnings guidance was at the higher end of her expectations.
