AstraZeneca
1Q Revenues: $11.4 billion (+56%)
1Q Earnings: $388 million (-75%)
Comments: Revenue in the quarter reflects growth across the company, the contribution of the Alexion medicines and several Vaxzevria contracts that are expected to complete delivery by 1H22. Products sales include $1.7 billion from medicines acquired with Alexion. 
 
Total revenue from Oncology increased 21% to $3.6 billion, including a milestone payment. Product sales from Oncology increased 18%, with Tagrisso sales up 11% to $1.3 billion, Imfinzi and Lynparza sales up 5% to $599 million and 617 million, respectively. Total Revenue from CVRM increased 14% to $2.2 billion, with Farxiga sales up 60% to $1.0 billion. R&I increased 2% to $1.6 billion, with Pulmicort sales down 34% primarily due to inclusion in China’s VBP18 program, implemented in October 2021. Rare Disease increased 3% to $1.7 billion with Durable C5 franchise growth, including continued conversion from Soliris to Ultomiris in PNH22 and aHUS23, and Soliris growth in gMG and NMOSD.
 
Key approvals include: Saphnelo and Evusheld in the EU, Ondexxya in Japan, and in the US, approvals of Ultomiris for gMG14 and Lynparza15 for early breast cancer (OlympiA). Recently, AstraZeneca and Daiichi Sankyo’s ENHERTU (fam-trastuzumab deruxtecan-nxki), a specifically engineered HER2-directed antibody drug conjugate (ADC), has been approved by the U.S. FDA for the treatment of adults with unresectable or metastatic HER2-positive breast cancer.
 
R&D expenses were up 24% to $2.1 billion driven by increased investment in several late-stage Oncology trials and the advancement of a number of Phase II clinical development programs in BioPharmaceuticals, and the acquisition of Alexion in July 2021.
 
Earnings in the quarter have been negatively impacted by $1.2 billion unwind of inventory fair value uplift recognized on the acquisition of Alexion.