# AstraZeneca lifts 2022 earnings outlook as cancer drugs boost results Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-11-10 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: AstraZeneca Raises Full-Year Outlook After Strong Quarterly Meta Description: Discover how AstraZeneca beat profit forecasts with key cancer drug sales and raised its forecast, despite challenges in China and the pharmaceutical sector. URL: https://financedigest.com/astrazeneca-lifts-2022-earnings-outlook-as-cancer-drugs-boost-resultshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-11-10t085738z2lynxmpeia908jrtroptp4health-coronavirus-britain-vaccine-1736814886511-compressed.jpg) By Natalie Grover (Reuters) -AstraZeneca raised its full-year earnings outlook on Thursday after strong sales of its key cancer drugs helped it beat quarterly profit and revenue forecasts, driving its shares to a 2-1/2 month high. The Anglo-Swedish company said it managed to grow its business in China despite protracted COVID lockdowns and was no longer pursuing U.S. approval for its [COVID-19 vaccine](https://www.financedigest.com/eu-regulator-backs-novavax-shot-as-regions-fifth-covid-19-vaccine.html "EU regulator backs Novavax shot as region’s fifth COVID-19 vaccine"). AstraZeneca is seen as a bellwether for the pharmaceutical sector in China, which accounted for about 16% of the company’s total [revenue last year](https://www.financedigest.com/german-tax-revenues-fall-in-august-for-first-time-this-year.html "German tax revenues fall in August for first time this year"). Sales in China have been hurt by lower [drug prices](https://www.financedigest.com/bristol-myers-pfizer-abbvie-drugs-likely-to-face-u-s-price-negotiation.html "Bristol Myers, Pfizer, AbbVie drugs likely to face U.S. price negotiation") while COVID lockdown measures have kept some patients from being diagnosed and seeking care. [Despite the headwinds](https://www.financedigest.com/despite-the-headwinds-investors-have-important-reasons-to-be-cheerful.html "DESPITE THE HEADWINDS, INVESTORS HAVE IMPORTANT REASONS TO BE CHEERFUL"), the company generated 8% sales growth in the region on a constant currency basis in the quarter, whereas it had expected a decline, chief executive Pascal Soriot said on a media call. Geopolitical challenges are growing in the region due to tensions between China and Taiwan, though Soriot said that had not [affected the company](https://www.financedigest.com/factbox-companies-potentially-affected-by-italys-election.html "Factbox: Companies potentially affected by Italy’s election") so far. We haven’t experienced any of those difficulties some [industries actually may experience,”](https://www.financedigest.com/ais-role-in-the-finance-industrys-customer-experience.html "AI’s role in the finance industry’s customer experience") he said. Better-than-expected [sales of AstraZeneca’s cancer medicines, including Tagrisso, Imfinzi and Enhertu, helped the company’s quarterly revenue beat, with sales of its broader oncology portfolio rising](https://www.financedigest.com/mercedes-posts-rise-in-q1-sales-boosted-by-evs-premium-cars.html "Mercedes posts rise in Q1 sales boosted by EVs, premium cars") 24%. AstraZeneca, which reports its results in dollars, [raised its adjusted earnings per share forecast](https://www.financedigest.com/cisco-forecast-raise-allays-tech-spending-fears-lifts-shares.html "Cisco forecast raise allays tech spending fears, lifts shares") for 2022 to grow by a “high twenties to low thirties percentage”, even though it expects a strong U.S [currency to be a drag on full-year revenue and profit](https://www.financedigest.com/forex-trading-how-to-trade-currencies-for-profit.html "Forex Trading: How to Trade Currencies for Profit"). Previously, it had [forecast adjusted EPS growth](https://www.financedigest.com/italy-slashes-2023-growth-forecast-but-sees-public-finances-improving.html "Italy slashes 2023 growth forecast but sees public finances improving") in the “mid-to-high twenties percentage. Its strong quarterly performance, coupled with recent positive pipeline updates underlies “why we continue to [see AZN as the best growth](https://www.financedigest.com/russias-rosatom-sees-2022-exports-growth-at-15-report.html "Russia’s Rosatom sees 2022 exports growth at 15% – report") story in EU Pharma,” Barclays analysts wrote in a note. [DIVERSIFIED PORTFOLIO](https://www.financedigest.com/how-to-successfully-diversify-your-portfolio.html "How to Successfully Diversify Your Portfolio") Soriot said the company had decided not to pursue U.S. approval for its [COVID shot](https://www.financedigest.com/fda-advisers-back-the-same-covid-vaccine-for-initial-shots-boosters.html "FDA advisers back the same COVID vaccine for initial shots, boosters"), noting declining demand for vaccines in the country and that the market was well-served by mRNA shots produced by rivals Pfizer and Modena. “To be honest, it didn’t make any sense for us to continue pursuing this application,” he said. [AstraZeneca produced one of the first COVID-19 shots](https://www.financedigest.com/gsk-sk-bioscience-to-test-covid-19-vaccine-against-astrazeneca-shot.html "GSK, SK Bioscience to test COVID-19 vaccine against AstraZeneca shot"), but lost out to the mRNA vaccines. But global sales of the company’s COVID therapy, Evusheld, have steadily grown, partially offsetting the rapid [decline in COVID](https://www.financedigest.com/roche-flags-2023-earnings-decline-on-slump-in-covid-products.html "Roche flags 2023 earnings decline on slump in COVID products") vaccine sales. Whilst some of the other key players in the COVID-19 market started to show a decline in momentum, AstraZeneca’s diversified portfolio…has [allowed them to stay on top](https://www.financedigest.com/sri-lanka-top-court-allows-proceedings-against-former-president-rajapaksa-others.html "Sri Lanka top court allows proceedings against former President Rajapaksa, others") and not be affected by the reduced global uptake of vaccines,” said Citeline analyst Zhyar Said. Evusheld [continues to demonstrate strong](https://www.financedigest.com/swedish-match-continues-to-see-strong-smoke-free-sales-growth.html "Swedish Match continues to see strong smoke-free sales growth") efficacy but there are a couple of variants that are resistant to it, Soriot said. The company is now working on an upgraded version of the therapy it hopes to have ready by the third or [fourth quarter](https://www.financedigest.com/german-gdp-contracted-by-0-4-in-the-fourth-quarter.html "German GDP contracted by 0.4% in the fourth quarter") of next year, he added. [(Reporting by Natalie Grover in London](https://www.financedigest.com/london-reclaims-place-as-preeminent-global-financial-centre-for-the-first-time-since-2013-according-to-global-regulatory-outlook-report-from-duff-phelps.html "London reclaims place as preeminent global financial centre for the first time since 2013, according to Global Regulatory Outlook report from Duff & Phelps"). Editing by Jane Merriman, Tomasz Janowski and Emelia Sithole-Matarise) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---