astraZeneca stock targets: AstraZeneca targets growth in 2024, but mixed views hurt stock price
Nearly a decade after AstraZeneca blocked an acquisition by U.S. rival Pfizer, CEO Pascal Soriot has rebuilt the British-Swedish drugmaker’s pipeline to include 13 blockbuster drugs. This refers to drugs with annual sales of more than $1 billion.
In 2023, sales of lung cancer treatment Tagrisso increased by 9%, sales of Imfinzi, another treatment, increased by 55%, and sales of leukemia treatment Calques increased by 23%. Sales of rare disease treatments such as Ultomiris and diabetes treatment Farxiga also surged.
AstraZeneca entered the fast-paced competition for respiratory syncytial virus (RSV) vaccines and obesity treatments through several deals last year, meeting analysts’ forecasts of slowing growth as COVID-19 drug sales declined.
AstraZeneca’s infant RSV shot, co-developed with Sanofi, is in high demand and after receiving approval in China, the company plans to significantly increase production capacity in 2024, Chief Financial Officer Aradhana Sarin said on an earnings call with reporters. said.
The drugmaker reported slightly better-than-expected fourth-quarter sales, but revenue fell short of analyst estimates due to increased R&D and lower prices for some drugs in emerging markets. This failure was the first in eight quarters, according to LSEG data. The company’s shares fell to 97.8 pounds by 12:12 GMT, their lowest in more than two months, making it the top decliner on London’s blue chip index. Some analysts said the brighter outlook for 2024 would dispel some observers’ concerns about slowing growth.
AstraZeneca expects total sales and core earnings per share (EPS) to increase in the low double digits to low teens this year.
Other analysts, including Citi and Jefferies, have pointed to several potential problems for 2024, including fewer major research and development updates than usual from drugmakers.
“We have long-term concerns about the diversification of treatments within the company, no matter how strong the underlying talent and science,” Citi said in a note.
Soriot also said this week’s sale of contract drugmaker Catalent to Novo Nordisk’s parent company shows the importance of building an independent supply chain.
AstraZeneca is a customer of Catalent for manufacturing some of its drugs, but is working to strengthen its internal capabilities to reduce its dependence on contract drugmakers, Soriot added.
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