FTSE 100 heavyweight Astrazeneca has upgraded its full-year revenue and earnings per share (EPS) forecasts, fuelled by a surge in revenues from new medicines.
Total revenue and core EPS are now both expected to increase by a mid-teens percentage, up from the previous forecast of a low double-digit to low-teens percentage.
In the first half of 2024, Astrazeneca reported an 18 per cent year-on-year increase in total revenue, reaching $2.6bn (£2bn). It was driven by an uptick in sales and sustained growth in Alliance Revenue from partnered medicines.
However, it cautioned that other operating income is expected to “decrease substantially”. The previous fiscal year benefited from a $241m (£187m) gain from the disposal of Pulmicort Flexhaler US rights and a $712m (£553m) one-off gain related to updates in contractual arrangements for Beyfortus.
Chief executive Pascal Soriot said: “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.
“This is a clear reflection of the substantial growth potential we see from both our approved medicines and those in our late-stage pipeline. Already this year we have announced five positive, potentially practice-changing Phase III studies that are anticipated to meaningfully contribute to our growth.
“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,” he added.
It comes amid an investment drive for the drug manufacturer. The company recently said it plans to invest $1.5bn (£1.2bn) in a new manufacturing facility in Singapore to produce antibody drug conjugates (ADCs), a next-generation cancer treatment.
In May, Astrazeneca announced its goal of hitting $80bn (£62.9bn) in total revenue by 2030 through launching new medicines and investing in technology.