Missed first-quarter expectations and a warning that currency movements may have a negative impact on the group’s ability to hit its long-term revenue target didn’t seem to bother AstraZeneca’s (AZN) shareholders when the numbers were first announced. The share price stayed resolutely flat, despite the fact that it is now trading at a big premium to the wider pharmaceutical sector.
But by the time the annual meeting was over, it became clear that Astra’s investors are indeed a bit miffed. About 35 per cent of the group’s shareholder register voted against the remuneration package of its chief executive, Pascal Soriot, who some are clearly holding responsible for the prolonged weakness in the group’s ability to grow revenues and the fact that costs keep mounting as AstraZeneca pours every spare penny into research and development.
But that strategy may eventually pay off, which is why Astra’s share price keeps climbing. It’s new drugs pipeline is among the best in the world and contains medicines such as Tagrisso, Lynparza and Imfinzi, which could yet hit blockbuster status ($1bn of annual revenue). These three drugs all reported impressive growth in the first quarter and although combined sales of $519m (£385m) failed to offset the 8 per cent decline in Crestor, there is certainly continued hope that Astra may soon hit the ‘prolonged revenue growth’ target that it’s management promised back in 2014.
