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Both AstraZeneca and Roche lifted their respective full-year profit guidances in light of strong quarterly financials released Thursday morning.
For AstraZeneca, total revenue increased 17% at constant exchange rates (CER) during Q2, nearly reaching $13 billion. Product sales increased 18% at CER and alliance revenue rose 42%, though collaboration revenue cratered by 98%.
Broken down by segment, the British pharma giant’s oncology, CVRM and R&I divisions each contributed 22% in total revenue growth, while rare disease generated 15%.
Oncology continues to be a reliable driver for the company, delivering $5.3 billion in revenue for Q2. The company has ambitions of building on its cancer treatments.
In June, AstraZeneca unveiled promising data for cancer drugs Enhertu and Tagrisso at the 2024 American Society of Clinical Oncology’s annual meeting in Chicago.
More recently, AstraZeneca’s immunotherapy Imfinzi plus chemotherapy was approved by the Food and Drug Administration for treating mismatch repair deficient advanced or recurrent endometrial cancer.
Just over two weeks ago, AstraZeneca appointed WPP as one of its primary oncology network partners, in which the agency will support U.S. and global advertising for AstraZeneca’s line of cancer medicines.
Additionally, the drugmaker’s earnings per share (EPS) rose 15% at CER to $1.24, though its core EPS slid 3% to $1.98.
Looking ahead, AstraZeneca raised its total revenue and core EPS outlooks, which are now projected to grow by a mid teens percentage at CER, up from a previously low double-digit to low teens percentage. The company added that an increase in collaboration revenue is not assumed in the upgraded guidance.
AstraZeneca CEO Pascal Soriot said in a press release that these quarterly results are a “clear reflection of the substantial growth potential” the company projects to achieve its goal of $80 billion in total revenue by 2030.
“Building on our strong growth in the first half of the year and continued underlying demand for our medicines we are upgrading our FY 2024 guidance for both Total Revenue and Core EPS,” he added. “In the year to date we have continued to make encouraging progress with several disruptive technologies, including antibody drug conjugates, bispecifics, cell and gene therapies, radioconjugates, and weight management medicines, all of which have the potential to drive our growth beyond 2030.”
The company released its earnings one day after inking a licensing agreement that could be worth more than $545 million with Pinetree Therapeutics for its preclinical epidermal growth factor receptor degrader candidate.
Meanwhile, Roche also enjoyed a strong first half of 2024, as group sales rose 5% and core operating profit increased 11% at CER.
Roche’s pharmaceuticals division saw sales increase 5%, thanks largely to sales of eye medicine Vabysmo. The FDA also recently approved the drug to be distributed by way of a prefilled syringe.
Its diagnostics unit also reported a 5% increase in sales, while core EPS rose 9%.
In light of these results, Roche now forecasts growth group sales in the mid single-digit range, as well as adjusted earnings in the high single-digit range, up from mid single-digit percentage growth.
“Our strong sales growth in the first half of 2024 reflects the high demand for our innovative medicines and diagnostics,” Roche CEO Thomas Schinecker said in a statement. “In the second quarter, we saw an acceleration of our growth momentum as Group sales were no longer impacted by the decline in COVID-19 sales, resulting in very strong sales growth for the Group. Based on our strong half-year results, we are raising our earnings outlook for the full year.”
The Swiss drugmaker released its earnings one week after publishing promising results of its GLP-1 drug candidate that it acquired as part of its $2.7 billion purchase of Carmot Therapeutics.
From a leadership perspective, Roche announced in late May that James Sabry, global head at Roche Pharma Partnering, is retiring after 14 years at the company and stepping down from his spot on the corporate executive committee.
During the quarter, the FDA also granted a breakthrough device designation to Roche’s Elecsys pTau217 plasma biomarker assay.