AstraZeneca sees COVID-related sales falling sharply but lift from other drugs ahead

AstraZeneca (AZ) has forecast that sales from its COVID-related products, including vaccines, will plunge by up to a quarter this year as the pandemic evolves.

The FTSE 100 firm, which has begun earning a modest profit from vaccine sales to countries that can easily afford the jabs, said the gross profit margins from its pandemic products would remain lower than the company average.

It made the remarks while revealing almost $4bn (£3bn) in global sales for its coronavirus vaccine over the past year.

AZ said it had released 2.5 billion doses and an expected decline in jabs this year would only be partly offset by growth in sales of its antibody drug Evusheld.

The company’s shares rose by 3% however when it tipped that total revenue would increase by around 18% during 2022 – led by five treatments including the lung cancer drug Tagrisso which racked up $5bn in sales during 2021 alone.

Its annual results showed that despite a 38% rise in revenue, AZ swung from pre-tax profits of almost £3bn in 2020 to a bottom line loss of £196m.

It reflected, the company said, its £29bn takeover of US-based Alexion Pharmaceuticals, and the costs of new drug research.

However, the group raised its annual shareholder dividend for the first time in a decade.

Chief executive Pascal Soriot told investors: “AstraZeneca continued on its strong growth trajectory in 2021, with industry-leading R&D (research and development) productivity, five of our medicines crossing new blockbuster thresholds, and the acquisition and integration of Alexion.

“We also delivered on our promise of broad and equitable access to our COVID-19 vaccine with 2.5 billion doses released for supply around the world, and we made good progress on reducing our greenhouse gas emissions.”