Published - July 28th, 2023 @ 3:38 PM (GMT+2)
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AstraZeneca's Exceeding Performance‍

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Riding the wave of its highly successful cancer medications, AstraZeneca reported an impressive Q2 performance, beating predictions in profits and sales, despite a decrease in COVID-19 vaccine revenue. The robust performance was bolstered by its varied portfolio of drugs treating cancer, metabolic issues, and rare diseases, pushing its shares up to a peak of 4.8%. By 1052 GMT, shares leveled off at a 3.9% increase, making AstraZeneca the highest contributing gainer on the FTSE 100.

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Boosting Investor Sentiment
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The optimism was further fueled by positive comments by CEO Pascal Soriot regarding a crucial lung cancer trial. He expressed strong encouragement based on interim data from the TROPION-Lung01 trial. However, he stopped short of declaring the results as "clinically meaningful."

Earlier this month, interim results from the TROPION trial on a novel precision drug named datopotamab deruxtecan, caused an 8% drop in AstraZeneca's shares. However, Soriot confirmed the company's intention to submit trial data to U.S. regulators, offering some reassurance to investors.

Impressive Earnings Growth
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The robust quarterly results included an adjusted profit of $2.15 per share, a 25% hike from the $1.98 per share expected, signifying continued robust performance from the UK's most significant company by market capitalization, valued at over $211 billion.

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Strong Non-COVID Performance & China Growth
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Contrastingly, the company reported no COVID-19 vaccine sales, in sharp contrast to its position as a top-seller in 2021, forecasting a significant sales decline for the full year.

With non-COVID-19 therapeutics witnessing double-digit revenue growth, AstraZeneca's strong business standing was reaffirmed. This was further emphasized by the 7% increase in sales in China, marking four consecutive quarters of growth.

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The company further upgraded its China guidance, predicting total revenue growth of a low-to-mid single-digit percentage in 2023. AstraZeneca is China's leading drugmaker, accounting for 13% of last year's revenue.

Dismissing reports of a potential spin-off of its China business, Soriot confirmed satisfaction with the company's existing structure in China. He emphasized their focus on delivering medicines to patients and collaborating with local biotech companies.

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Major Acquisition
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Lastly, AstraZeneca reported that Alexion (NASDAQ:ALXN), its unit, has entered an agreement to acquire Pfizer's early-stage rare disease gene therapy portfolio for up to $1 billion, along with royalties on sales, to enhance its genomic medicine capabilities.

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