AstraZeneca share price rallies as new medicines boost sales

Blue-chip pharmco reaffirms full-year guidance

AstraZeneca share price rallies as new medicines boost sales

Shares in AstraZeneca (LON:AZN) have climbed higher this morning, with investors digesting the group’s second-quarter results which showed that the company had received a boost from new medicines during the reported period. The blue-chip drugmaker further reaffirmed its guidance for the full year, noting that it was on track to return to growth this year.

As of 09:40 BST, AstraZeneca’s share price had added 2.75 percent to 5,716.00p. The group’s shares are outperforming the broader London market, with the benchmark FTSE 100 index having slipped fractionally into the red and currently standing 0.03 percent lower at 7,655.95 points.

AstraZeneca posts second-quarter results

AstraZeneca announced in a statement this morning that its product sales had climbed two percent higher to $5 billion at actual exchange rates in the second quarter of the year, while inching one percent lower on a constant exchange rate (CER) basis. The pharmco’s core operating profit, however, fell 17 percent at actual exchange rates to $763 million, while core earnings per share dipped 21 percent to $0.69.

The blue-chip group further noted that its half-year product sales had  increased by two percent at actual exchange rates to $10 billion, while down two percent at CER with new medicines generating more than $1bn in additional sales at CER in the half. The news marks a boost for the Anglo-Swedish drugmaker which is counting on its pipeline of new drugs to counter a decline in sales in some of its top-selling drugs which have come under pressure from cheaper generics.

Pharmco ‘firmly on track’ to return to growth

“The performance in the first half demonstrated that we remain firmly on track to return our company to Product Sales growth in 2018,” AstraZeneca’s chief executive Pascal Soriot commented in the statement, adding that the group’s new drugs had “performed strongly and have established themselves as major drivers of Product Sales”.

As of 10:06 BST, Thursday, 26 July, AstraZeneca plc share price is 5,727.00p.

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