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AstraZeneca PLC on Friday reported a sharp rise in first-quarter revenue, though profit declined, and the drugmaker also announced plans for a new strategic site in the US.
Quarterly pretax profit shrank 66% to $553 million from $1.61 billion a year ago. Revenue rose by 56% to $11.39 billion from $7.32 billion. Revenue from its oncology arm grew by 21% to $3.64 billion from $3.02 billion.
AstraZeneca completed its $39 billion takeover of Boston-based rare diseases firm Alexion Pharmaceuticals in July last year, helping to boost its top line.
In the quarter, AstraZeneca generated $1.09 billion in sales from its Covid-19 vaccine Vaxzevria, ups sharply from a year prior. Contracts with the vaccine are expected to complete delivery by the second half of the year, the firm added.
‘The majority of Vaxzevria revenue in 2022 is expected to come from initial contracts,’ it said.
The drugmaker's reported earnings per share fell 79% yearly to $0.25. Core EPS, which excludes acquisition-related items, amortisation of intangibles, impairments, and restructuring charges, was 16% higher at $1.89.
Astra backed annual guidance. It tips revenue to rise ‘by a high teens percentage’ and core EPS to climb by a ‘mid-to-high twenties percentage’. Both growth rates are at constant currency. Astra has not given any guidance on a reported basis.
Also on Friday, AstraZeneca unveiled plans for a new site that aims to both house the new Alexion headquarters and a new strategic research & development centre at Kendall Square in Cambridge, Massachusetts, US
The site, planned for completion in 2026, ‘will bring together approximately 1,500 R&D, commercial and corporate colleagues into a single purpose-built space,’ the Cambridge, England based drugmaker said. It ‘will be in close proximity to several major academic, pharma and biotech institutions, inspiring greater collaboration and innovation potential, and providing access to future talent,’ the company added.
Alexion's ‘R&D centre of excellence will remain in New Haven, Connecticut,’ AstraZeneca said. Alexion's lab floor space in New Haven is set to double by the end of 2023 due to the signing of a new lease, its parent company explained.
AstraZeneca shares were 0.6% lower at 10,494.00 pence each in London on Friday morning.
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