AstraZeneca stock bolted higher Thursday — and is now within striking distance of a breakout — after its cancer treatments propelled a first-quarter beat.
The Cambridge U.K.-based drugmaker reported almost $5.11 billion in sales of its cancer drugs. Sales rocketed 23% on a strict, as-reported basis and 26% when excluding the impact of exchange rates. The biggest beat came from AstraZeneca's new breast cancer drug, Truqap. Though small at $50 million, sales of Truqap topped forecasts by 203%, Leerink Partners analyst Andrew Berens said in a note.
Sales of AstraZeneca's biggest cancer treatment, Tagrisso, leapt 12% to nearly $1.6 billion. The best growth came from breast cancer drug Enhertu. Enhertu sales skyrocketed 79% to $461 million.
On today's stock market, AstraZeneca stock advanced 5.4% to 75.03. Shares are climbing the right side of a yearlong consolidation. Aggressive investors might use 69.91 as an early entry. MarketSurge.com pattern recognition notes a yearlong cup base with a buy point at 76.56.
Meanwhile, Sanofi stock also jumped higher after the fellow pharma giant posted its first-quarter results. Bristol Myers Squibb delivered a smaller-than-expected loss for the quarter, but lowered its range of guidance, undercutting expectations.
AstraZeneca Stock: Oncology Sales Shine
Across all products, AstraZeneca's first-quarter revenue jumped 17% to $12.68 billion and easily beat projections for $11.8 billion. Excluding the impact of exchange rates, sales climbed 19%.
Core earnings also increased 7% — or 13% in constant currency — to $2.06 per share. Analysts polled by FactSet expected a lower $1.91 a share. Leerink's Berens noted the strength in core earnings came from AstraZeneca's improving gross and operating margins, which stood at 82% and 34%, respectively.
Importantly, the company's biggest drug, Farxiga, handily topped Wall Street's projections at $1.89 billion, up 43%. Farxiga treats diabetes, chronic kidney disease and heart failure.
Berens kept his outperform rating on AstraZeneca stock. He described the quarter as "stellar," noting that the company also raised its total dividend for the year by 20 cents per share.
AstraZeneca reiterated its outlook for the year, and expects revenue and core earnings to grow by low double-digit or low-teens percentages each.
Sanofi Stock: Dupixent Missed, But Solid
In related news, Sanofi stock jumped 5.9% to 49.36 on its quarterly beat. The French drugmaker posted adjusted earnings of 95 cents a share, down 20%, but three pennies above forecasts. Sales also fell 2.4% to $11.67 billion, but topped FactSet-polled analysts' consensus call for $11.41 billion.
Dupixent, the Regeneron Pharmaceuticals-partnered treatment for eczema, asthma and other allergic conditions, brought in about $3.08 billion in sales, RBC Capital Markets analyst Brian Abrahams said in a report. That beat Sanofi stock analysts' forecasts, but was shy of the projection from analysts following Regeneron.
"This perhaps reflects that some seasonal headwinds that were narrated by Sanofi may have been better reflected by those who closely follow Sanofi," he said.
Still, Sanofi's presentation suggests Dupixent sales remain on track for 13 billion euros this year — or $13.9 billion based on today's exchange rates. This suggests strong demand this year, Abrahams said. He kept his outperform rating and 1,189 price target on Regeneron stock. He doesn't rate Sanofi stock.
Bristol Dives On Its Profit Guidance
Bristol Myers stock, on the other hand, tumbled 8.5% to 44.70.
The company maintained its sales outlook for the year, calling for a low single-digit jump. But Bristol Myers slashed its earnings guidance following the takeovers of Karuna Therapeutics and RayzeBio. Now, Bristol Myers expects earnings of 40 to 70 cents per share, minus some items. Previously, the company guided to a range of $7.10 to $7.40.
For the first quarter, Bristol Myers lost an adjusted $4.40 per share, which was slightly narrower than calls for a loss of $4.43 a share. Sales edged 5% higher to $11.87 billion and topped expectations for $11.45 billion, according to FactSet.
Sanofi stock vaulted over its descending 50-day line, while Bristol Myers stock plummeted farther below that key mark. AstraZeneca stock, on the other hand, has remained above that key point since late last month.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
