* Q1 total sales $7.32 bln, core EPS $1.63 beat forecasts
* Maintains 2021 outlook; vaccine, Alexion impact excluded
* Says on track to deliver 200 million doses a month
* Shares jump as much as 4% after results beat forecasts
* Oxford vaccine a drag on net income of about $40 mln
(Adds vaccine drag on net income, total deliveries)
By Pushkala Aripaka and Ludwig Burger
April 30 (Reuters) - AstraZeneca said its COVID-19 vaccine
sales were $275 million in the first-quarter and it is on track
to deliver 200 million doses a month from April, as
better-than-expected results and a second half growth forecast
boosted its shares.
Chief Executive Pascal Soriot again defended the vaccine
rollout on Friday, saying that Anglo-Swedish drugmaker had not
overpromised on its ability to supply shots, as he defended big
cuts in deliveries that prompted a European Union lawsuit.
AstraZeneca, which has said it will not make a
profit from the shot during the pandemic, was reporting
financial details of distribution of the vaccine for the first
time - including a hit of 3 cents on earnings per share, or a
drain of about $40 million on net income.
The effect on the bottom line "will vary quarter by quarter
and we remain committed to supplying this vaccine at no profit
during the pandemic period,” a spokesman said.
Speaking in a shareholder call, Soriot said the no-profit
pledge would likely end some time next year. He added that
afterwards, "certainly for the low, middle income countries we
have a commitment to stay at either no profit for some parts of
the world or at very modest prices".
The company said the revenue was based on delivery of about
68 million doses, adding that European sales were $224 million,
emerging markets $43 million and $8 million in the rest of the
world. Sales of $275 million for the 68 million doses equates to
a price tag of around $4 per shot.
When including production and distribution from partners
such as the Serum Institute of India, more than 300 million
doses have been supplied globally, it added.
AstraZeneca, working with the vaccine's inventor Oxford
University, was one of the leaders in the global race to develop
a COVID-19 vaccine. Its cheap and easily transportable shot was
hailed as a milestone in the fight against the crisis, but has
since faced a series of setbacks.
"Shipments (of COVID-19 vaccines) are increasing as
manufacturing improves," Soriot said during a briefing, adding
that it was on track to deliver 200 million doses a month.
"We never overpromised, we communicated what we thought we
would achieve at the time," he said.
AstraZeneca shares were up 5.2% at 7,784 pence at 1507 GMT,
putting them on track for their best day since early November.
The stock, which hit record highs in July 2020 due to optimism
around the vaccine, ended last year 4% lower.
The results come after a bruising start to the year as the
drugmaker struggles with production of its vaccine and faces a
legal battle after cutting deliveries to Europe, while
regulators probe rare blood clots in people who got the shot.
"Despite the intense operational and political challenges
created by AZN’s COVID-19 vaccine roll out, the core business
continues to perform above market expectations in a most
challenging quarter, demonstrating strength across therapeutic
areas and geographies," Citigroup analysts said in a note.
VACCINE RACE
Pfizer, whose COVID-19 vaccine co-developed with
German partner BioNTech is several times more costly
than AstraZeneca's, has forecast $15 billion for its share of
sales, with analysts expecting as much as $18 billion on
average.
BioNTech expects close to 10 billion euros ($12.1 billion)
in revenues from committed vaccine deliveries this year but
raised the prospect of more supply deals.
Moderna in February said it was expecting sales of
$18.4 billion from its own vaccine this year.
Before AstraZeneca's earnings, market researcher GlobalData
said it expected annual sales of $278 million this year and next
for the drugmaker's coronavirus vaccine, branded Vaxzevria.
AstraZeneca said it is working as fast as possible to
compile data to apply for U.S. approval. Soriot said there was
nothing wrong with the data, but the dataset was very large.
RESILIENT
AstraZeneca's core business has proved resilient, with the
drugmaker sticking to its forecast for 2021 on Friday and
predicting better times ahead.
This guidance does not include any impact from sales of the
vaccine and its $39 billion purchase of Alexion, which is
expected to close in the third quarter.
Total revenue of $7.32 billion for the three months to March
exceeded analysts' expectations of $6.94 billion, while core
earnings of $1.63 cents per share beat a consensus of $1.48.
Quarterly sales growth was driven by best-selling lung
cancer drug Tagrisso, up 17% to $1.15 billion, while revenues
from heart and diabetes drug Farxiga jumped to a
better-than-expected $625 million, on new prescriptions for
heart failure.
($1 = 0.8262 euros)
(Reporting by Pushkala Aripaka in Bengaluru, Ludwig Burger in
Frankfurt and Alistair Smout in London; Editing by Josephine
Mason and Alexander Smith and Kirsten Donovan)
Astrazeneca (AZN)
