AZNCF - AstraZeneca: Plotting A Bold Path To $80 Billion Revenues I'm Pausing For Breath

2024-05-24 07:00:00 ET

Summary

• AstraZeneca reported Q1 2024 earnings of $12.7bn, up 19% YoY, and EPS of $2.06, up 13% YoY.
• The company aims to achieve $80bn in total revenue by 2030, up from $45.8bn in 2023.
• AZN plans to launch 20 new medicines by 2030, many with the potential to generate over $5bn in peak year revenues.
• Management went into incremental detail on how this may be achieved at a recent investor day, but stopped short of mapping out product-by product revenues.
• In this post, I share how it may be possible for management to achieve such lofty goals - and also highlight how challenging it may be. I am adjusting my rating to "hold" as a result.

Investment Overview

When I last covered AstraZeneca ( AZN ), the Anglo / Swedish Pharmaceuticals giant for Seeking Alpha, it was to advise readers that "It's OK To Buy Dip On Q4 Bottom-Line Miss".

Analysts were disappointed that earnings per share "(EPS") in Q4 were $1.45, not the ~$1.5 they had expected, which management put down to higher R&D and SG&A costs, owing to the upcoming launches of three new drugs, Airsupra, Wainua and Truqap....

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