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Sound company. Slight dip in revenue but hopefully already priced in to SP.
Looks positive to me, yes total revenue is down slightly but the 15% increase in non covid revenue is very nice
Financial performance (Q1 2023 figures unless otherwise stated, growth numbers at CER)
? Total Revenue stable at $10,879m, despite a decline of $1,460m from COVID-19 medicines
? Excluding COVID-19 medicines, Total Revenue increased 15% and Product Sales increased 16%
? Total Revenue from Oncology medicines increased 19%, CVRM7 22%, R&I8 8%, and Rare Disease 14%
? Core Gross margin of 83%, up four percentage points, reflecting the decline in sales of lower margin COVID-19 medicines, the cost of production in prior periods, and a mix shift to more speciality medicines
? Core Operating margin of 36%, up one percentage point, reflecting a $220m increase in Core Other operating income, which included a gain from the divestment of Pulmicort Flexhaler rights in the US
? Core EPS increased 6% to $1.92
? Reiterating guidance for FY 2023 Total Revenue and Core EPS
https://www.astrazeneca.com/media-centre/press-releases/2023/q1-2023-results.html
.
All I am suggesting is that in the next 5 years we will probably get 3% pa in dividend and maybe 10-15% in capital gain……I certainly would not expect another 75% capital gain (which is adding £135bn and take the mcap to well over £300bn.
This is not a highly scaleable tech company……its products are highly regulated for quality, target market and price and it takes £1bn or more to bring a new drug to market….
This is most definitely a capital growth stock for me. Only been investing in AZN since 2019. It's my second largest stock and my capital is up 73% even after today's fall. Add in the dividends and it's done very well.
probably got lucky with the timing as the decade before would not have been so impressive - investors need to decide on the prospects for the next decade
that is about a 4 fold increase in about 10 years
''Have to treat mega pharma stocks as income stocks with limited capital growth but a decent dividend''
I first bought at about £30 - I don'y call that limited capital growth
Have to treat mega pharma stocks as income stocks with limited capital growth but a decent dividend…..even 10% gain from here is like creating a company worth 18bn….and remember these are really global stocks priced in USD not £ so it goes up and down with the exchange rate.
Growth can come through the new drug pipeline and taking risks in licensing /take it over early stage companies to boost growth. AZ has done well with its M&A and drug pipeline for the last 10 years but those drugs will start to exit patent protections in the next decade which will mean it has to run harder to maintain its earnings.
There are plenty of smaller companies that have potential to create a brilliant new treatment or be taken over and will be more volatile than AZ. If you want to play in these then avoid anything that has less than 2 years funding visibility - it could just vaporise before your eyes.
As well as a few specific pharma I hold L&G Global Healthcare & Pharmaceutical OEIC to give wider exposure to the market - it has done pretty well for me and is certainly less volatile than my individual stocks.
Been here long time as ex employee. Sold a few 100 this morning to invest elsewhere. AZN is a great stock, think it will stay around these levels for a while now.
Thanks. I’ve just started investing. But looking at some European stocks such as novo, Santofi etc… I like pharmaceuticals but my holding time hopefully would be for years and years.
Not an easy question to answer. It really does depend on your time horizon.
I would say that if you are looking to buy and hold then todays price may seem quite cheap in ten years time, but may not in only a years time.
Bear in mind that in the short term high returns are only available from companies that carry high risk and if an established company looks cheap there is probably a good reason for that.
My portfolio holds many Pharma companies but it is a holding that I have built up over a 30 year period. I do hold other stacks in addition. Some are doing very well and others less so.
Hi All,
Hopefully Astra will continue to rise. I am new here. I’ve been in Astra about 6 months. Wish I was in from the early days. Is there any European Pharma that anyone could recommend. I’ve been looking at Novartis, but they look second best to Roche. Looking for growth. Thanks. All the best
will need to rebalance p/f weightings slightly circa 13,000,
but that would be a nice problem to reach if we get there.
Not long before the bubble bursts on this share. Paid a lot for takeovers. There is a stack of covid vacancies. Divy is less than 2%. What's to like ?
Yes spikeyj, 110 proving not too bad as a top up point….still some upside from its oncology and alexion portfolios to come.
This company thinks it is indemnified and protected. They are in for a shock come 2024/25
… but meanwhile, for those of us who are invested long in AZN on a
medium/long view [albeit with the occasional small trading slice, soz!],
AZN continues to be pretty rewarding. that 5 year chart, for instance,
tells a pretty satisfying story. there is plenty of room in the world for
both traders and investors, vive la difference, plus la meme chose, etc.
good luck and atb all honest folks.
Wow, team hindsight are having fun today.
Keee, when did I say I was short on AZN. I was short on markets, and am again. I think you'll find they dropped a lot with the banking concerns and made me a few quid. I then went long banks and have closed them in profit too.
Giving a bit back now but its temporary - just wait and see yappy..!
Maybe just a fat finger?
I think they may have found a cure for useless politicians to make them speechless
Malaria vaccine news imminent ??
Yes but that wasn't today's news. Delayed reaction?
https://uk.finance.yahoo.com/news/astrazeneca-confident-covid-antibody-protects-114549908.html