REG - AstraZeneca PLC - AstraZeneca to deliver $80bn revenue by 2030

AstraZenecaAnnouncement

21/05/2024 07:00

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RNS Number : 1878P  AstraZeneca PLC  21 May 2024

 

21 May 2024

 

AstraZeneca sets ambition to deliver $80 billion Total Revenue by 2030 and

sustained growth post 2030

 

Launch of 20 new medicines expected by 2030

 

Significant growth from existing oncology, biopharmaceuticals

and rare disease portfolios

 

Investing in disruptive innovation that will shape the future of medicine and

drive long-term growth

 

Decoupling carbon emissions from revenue growth

 

 

Today AstraZeneca revealed its bold ambition to deliver $80 billion in Total
Revenue by 2030, up from $45.8 billion in 2023. This will be achieved through
significant growth in its existing oncology, biopharmaceuticals and rare
disease portfolio, and by launching an expected 20 new medicines before the
end of the decade. To drive sustained growth beyond 2030, the Company will
continue investing in transformative new technologies and platforms that will
shape the future of medicine.

 

AstraZeneca will maintain its strategic commitment to R&D while focusing
on productivity throughout the Company, driving operating leverage and
enabling the delivery of its ambition for a mid-30s percentage Core operating
margin by 2026. Beyond 2026, Core operating margin will be influenced by
portfolio evolution and the company will target at least the mid-30s
percentage range.

 

Pascal Soriot, Chief Executive Officer, AstraZeneca said: "Today AstraZeneca
announces a new era of growth. In 2023 we delivered the ambitious $45 billion
revenue goal set a decade ago. With the exciting growth of our innovative
pipeline, which has the potential to transform millions of lives, we are now
aiming for $80 billion by 2030.

 

We are planning to launch 20 new medicines by 2030, many with the potential to
generate more than $5 billion in peak year revenues. The breadth of our
portfolio together with continued investment in innovation supports sustained
growth well past the end of the decade."

 

As AstraZeneca continues to grow across all therapy areas, it will continue to
decouple its carbon emissions from its increase in revenue. The Company has
already reduced its greenhouse gas emissions (Scopes 1 and 2) by 68% from its
2015 baseline while growing Total Revenue by 85% over the same period. By 2026
the Company will be carbon zero for Scope 1 and 2 emissions and by 2030 halve
its Scope 3 emissions, on the way to science-based net zero by 2045 at the
latest.

 

Notes:

 

A webcast of the Investor Day event will begin today, 21 May 2024, at 10:00 UK
time. Details can be found at
www.astrazeneca.com/investor-relations/astrazeneca-investor-day.html
(https://www.astrazeneca.com/investor-relations/astrazeneca-investor-day.html)

 

Basis of AstraZeneca's ambitions, forecasts and targets

 

AstraZeneca's ambitions, forecasts and targets in this announcement (the
"Financial Ambition Statements") are derived from AstraZeneca's most recent
risk-adjusted mid- and long-term plans, adjusted for developments in the
business since those plans were finalised. The Financial Ambition Statements
are based on management's risk-adjusted projections for individual medicines
and individual clinical trials. Estimates for these probabilities are based on
industry-wide data for relevant clinical trials in the pharmaceutical industry
at a similar stage of development adjusted for management's view on the risk
profile of the specific asset. The peak year revenue (PYR) potential for
individual medicines referred to in this announcement are the maximum
estimated Total Revenue to be recognised by AstraZeneca in a single calendar
year, during the lifecycle of the medicine, and are based on management's
latest non-risk-adjusted forecast estimates. Estimates are based on customary
forecasting methodologies used in the pharmaceutical industry. Peak year
revenue may occur in different years for each NME depending on trial outcomes,
approval label, competition, launch dates and exclusivity periods, amongst
other variables. The peak year revenue figures are derived from net sales at
nominal values and are not risk-adjusted or time-value discounted.  The
development of pharmaceutical products has inherent risks given scientific
experimentation and there are a range of possible outcomes in clinical
results, safety, efficacy and product labelling. Clinical results may not
achieve the desired product profile and competitive environment, pricing and
reimbursement may have material impact on commercial revenue forecasts. By
their nature, forecasts are based on a multiplicity of assumptions and actual
performance in future years may vary, significantly and materially, from these
assumptions. The Financial Ambition Statements in this announcement are based
on Q1 2024 exchange rates; AstraZeneca undertakes no obligation to update
those statements based on future currency movements.

 

Attention is drawn to the notice set out under the heading Forward Looking
Statements below.

 

AstraZeneca (https://www.astrazeneca.com/)

AstraZeneca (LSE/STO/Nasdaq: AZN) is a global, science-led biopharmaceutical
company that focuses on the discovery, development, and commercialisation of
prescription medicines in Oncology, Rare Diseases, and BioPharmaceuticals,
including Cardiovascular, Renal & Metabolism, and Respiratory &
Immunology. Based in Cambridge, UK, AstraZeneca's innovative medicines are
sold in more than 125 countries and used by millions of patients worldwide.
Please visit astrazeneca.com (http://www.astrazeneca.com/)  and follow the
Company on social media @AstraZeneca
(https://gateway.zscalertwo.net/auD?origurl=https:%2f%2fwww.linkedin.com%2fcompany%2fastrazeneca&_ordtok=Mkk3WV5DBDPmQrD4F5MGdGDMZR)

 

Contacts

For details on how to contact the Investor Relations Team, please click here
(https://www.astrazeneca.com/investor-relations.html#Contacts) . For Media
contacts, click here (https://www.astrazeneca.com/media-centre/contacts.html)
.

 

 

Forward Looking Statements

 

In order, among other things, to utilise the 'safe harbour' provisions of the
US Private Securities Litigation Reform Act of 1995, AstraZeneca (hereafter
'the Group') provides the following cautionary statement:

 

This document contains certain forward-looking statements with respect to the
operations, performance and financial condition of the Group, including, among
other things, statements about expected or targeted revenues, margins,
earnings per share or other financial or other measures (including the
Financial Ambition Statements described in this announcement). Although the
Group believes its expectations and targets are based on reasonable
assumptions and has used customary forecasting methodologies used in the
pharmaceutical industry and risk-adjusted projections for individual medicines
(which take into account the probability of success of individual clinical
trials, based on industry-wide data for relevant clinical trials at a similar
stage of development), any forward-looking statements, by their very nature,
involve risks and uncertainties and may be influenced by factors that could
cause actual outcomes and results to be materially different from those
predicted. The forward-looking statements reflect knowledge and information
available at the date of preparation of this document and the Group undertakes
no obligation to update these forward-looking statements. The Group identifies
the forward-looking statements by using the words 'anticipates', 'believes',
'expects', 'intends' and similar expressions in such statements. Important
factors that could cause actual results to differ materially from those
contained in forward-looking statements, certain of which are beyond the
Group's control, include, among other things:

-     The risk of failure or delay in delivery of pipeline or launch of
new medicines;

-     the risk of failure to meet regulatory or ethical requirements for
medicine development or approval;

-     the risk of failures or delays in the quality or execution of the
Group's commercial strategies;

-     the risk of pricing, affordability, access and competitive
pressures;

-     the risk of failure to maintain supply of compliant, quality
medicines;

-     the risk of illegal trade in the Group's medicines;

-     the impact of reliance on third-party goods and services;

-     the risk of failure in information technology or cybersecurity;

-     the risk of failure of critical processes;

-     the risk of failure to collect and manage data in line with legal
and regulatory requirements and strategic objectives;

-     the risk of failure to attract, develop, engage and retain a
diverse, talented and capable workforce;

-     the risk of failure to meet regulatory or ethical expectations on
environmental impact, including climate change;

-     the risk of the safety and efficacy of marketed medicines being
questioned;

-     the risk of adverse outcome of litigation and/or governmental
investigations;

-     intellectual property-related risks to the Group's products;

-     the risk of failure to achieve strategic plans or meet targets or
expectations;

-     the risk of failure in financial control or the occurrence of fraud;

-     the risk of unexpected deterioration in the Group's financial
position;

-     the impact that global and/or geopolitical events may have, or
continue to have, on these risks, on the Group's ability to continue to
mitigate these risks, and on the Group's operations, financial results or
financial condition.

 

There can be no guarantees that the conditions to the closing of the proposed
transaction with Fusion will be satisfied on the expected timetable, or at
all, or that "FPI-2265" (Ac225-PSMA I&T) or any combination product will
receive the necessary regulatory approvals or prove to be commercially
successful if approved. There can be no guarantees that the conditions to the
closing of the proposed transaction with Amolyt Pharma will be satisfied on
the expected timetable, or at all, or that eneboparatide ("AZP-3601") will
receive the necessary regulatory approvals or prove to be commercially
successful if approved.

 

Adrian Kemp

Company Secretary

AstraZeneca PLC

 

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