AstraZeneca 2Q Net Profit Dropped Despite Higher Revenue; Raises Guidance

   By Cecilia Butini 
 

AstraZeneca PLC said Thursday that net profit declined on-year in the second quarter, though total revenue increased, and raised its core earnings-per-share guidance for 2021.

The pharmaceutical major posted a profit of $550 million in the quarter, down from $756 million in the same period a year prior, on sales which grew to $8.22 billion from $6.28 billion, including revenue generated from the company's Covid-19 vaccine.

Core earnings per share were $0.90 in the quarter, down from $0.96 in the same quarter a year prior, as the metric continued to suffer from the impact of the company's Covid-19 vaccine, which AstraZeneca is developing at no profit.

AstraZeneca raised its guidance for core EPS growth in 2021 following the recently completed acquisition of Alexion Pharmaceuticals Inc. and the issuance of new shares. It said it expects total revenue to increase by a low-twenties percentage and core EPS to be in the range of $5.05 to $5.40. It had previously guided for the metric to be in a range of $4.75 and $5.

"The guidance does not incorporate any revenue or profit impact from sales of the pandemic Covid-19 vaccine," AstraZeneca said, adding that it recognizes uncertainties related to the effects of the pandemic, including the impact from potential new medicines for Covid-19 in clinical development.

AstraZeneca's Covid-19 vaccine generated revenue of $894 million in the quarter, the company said.

Write to Cecilia Butini at [e-mail]

(END) Dow Jones Newswires

July 29, 2021 02:52 ET (06:52 GMT)

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