AstraZeneca’s (AZN) third-quarter results give the potential for both very good and very bad headlines. On the plus side, total revenues of $6.2bn (£4.8bn) – up a tenth on the comparable period last year – came in 4 per cent ahead of consensus expectations. But critics could argue that this is not a reflection of the long-awaited recovery, but due to the $1bn one-off payment from its immuno-oncology partnership with US pharma giant Merck (US:MRK).
True, "externalisation" revenue (where Astra licenses out its medicines to peers in exchange for one-off payments and royalty revenues) was the main driver of the top-line growth, but the group also reported strength from newly launched drugs Tagrisso, Brillinta and Farxiga. Sales erosion from medicines that have lost their patent protection is also beginning to slow, meaning the revenue decline from products (2 per cent at constant currencies) was less bad than analysts had feared.
Meanwhile, clinical progress remains strong: seven new drugs gained approval in various jurisdictions, three were submitted for regulatory submission and two successfully completed a final phase trial.
