AstraZeneca sees profits surge on drug sales and forecasts further growth

08 February 2024 , 11:05

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Drugs giant AstraZeneca has seen its annual profits more than double (Image: PA Wire/PA Images)

Drugs giant AstraZeneca has seen its annual profits more than double, thanks to strong sales of its cancer treatments.

The company predicts this will help boost revenues and earnings in 2024. The pharmaceutical firm reported pre-tax profits of £5.5 billion for 2023, up from £1.8 billion the previous year.

Sales increased by 3% to £36.3 billion, or 15% higher excluding Covid-19 products and on a constant currency basis. Sales of its oncology drugs jumped 19% to £14.6 billion now making up 40% of groupwide revenues, up from 35% in 2022.

This helped offset a £2.9 billion loss of sales from Covid-19 treatments. AstraZeneca saw just £9.5 million in sales of its Covid-19 vaccine Vaxzevria which was developed with the University of Oxford to help protect people from the pandemic.

However, AstraZeneca had always developed the jab on a not-for-profit basis. Shares in the FTSE 100-listed group fell 3% in morning trading on Thursday as its fourth quarter figures came in lower than expected.

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It reported pre-tax profits of £710 million in the final months of 2023, which was 15% higher than a year ago, but less than most analysts were expecting. The company is looking forward to growing even more in the next year.

They're hoping for a "low double-digit to low teens percentage" increase in money made and profits per share, not counting changes in money value from different countries. Pascal Soriot, the boss of AstraZeneca, said: "As AstraZeneca celebrates its 25th anniversary, we are pleased to report another year of strong financial performance and scientific progress. We expect another year of strong growth in 2024, driven by continued adoption of our medicines across geographies."

Lawrence Matheson