AstraZeneca raised its 2022 sales outlook after its Covid treatment, Evusheld, made an unexpectedly hefty contribution to second-quarter sales — but AZN stock inched lower Friday.
Evusheld is an antibody treatment that helps protect against Covid in immunocompromised people. During the June quarter, Evusheld generated $914 million in sales. That was 22% above Wall Street's forecasts, SVB Securities analyst Andrew Berens said.
Meanwhile, AstraZeneca's Covid vaccine — which is not authorized in the U.S., but is used abroad — brought in $1.54 billion in sales, growing 36% on a strict, as-reported basis.
The performance of the two products, in addition to its underlying business, pushed AstraZeneca to raise its sales outlook. Now, the company expects full-year sales to increase by the low 20% range, up from its prior view for that was in the high-teens. AstraZeneca also predicted growth in a range of mid-to-high 20 percentage points in core earnings.
On the stock market today, AZN stock dipped a fraction to close at 66.23.
AZN Stock: Flat Covid Sales In 2022
Despite the increase in total sales guidance, AstraZeneca expects flat sales of Covid drugs overall for 2022. Previously, the company called for a decline. But growth in Evusheld is expected to offset a decline for its Covid vaccine, Vaxzevria. Pfizer and Moderna are also struggling with slowing demand for their Covid shots.
Overall, AstraZeneca's sales climbed 31% to $10.77 billion, topping projections for $10.33 billion, according to FactSet. Core earnings surged 92% to $1.72 per share and also beat expectations.
Berens, the SVB analyst, noted cancer drugs Calquence and Imfinzi beat expectations. AstraZeneca also reported better-than-expected sales of diabetes drug Farxiga, a rare disease medicine called Soliris, acid reflux treatment Nexium and cholesterol med Crestor.
He kept his outperform rating on AZN stock.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
