AstraZeneca kicks off 'new era of growth' with aim to hit $80 billion of sales by 2030

By Louis Goss

AstraZeneca on Tuesday outlined ambitions to almost double its sales over the next six years by launching 20 new medicines by 2030.

In a statement, the Anglo-Swedish pharmaceutical company said it is aiming to boost its revenue from $45.8 billion in 2023 to $80 billion in 2030.

Shares in AstraZeneca (UK:AZN) (AZN), listed on the London Stock Exchange, increased by 1% on Tuesday having gained 13% in the year-to-date.

AstraZeneca CEO Pascal Soriot said the announcement marks the start of a "new era of growth" that will continue beyond 2030.

The pharma giant's new $80 billion sales ambition implies compound annual growth of 7% each year, and 16% stronger growth than that expected by analysts, Visible Alpha data shows.

The plan is set to see AstraZeneca bolster its existing oncology, biopharmaceutical and rare diseases portfolios and launch an expected 20 new medicines before the end of the decade.

"We are planning to launch 20 new medicines by 2030, many with the potential to generate more than $5 billion in peak year revenues," Soriot said.

The Cambridge-headquartered company also vowed to continue investing in "transformative new technologies" to ensure it sustains its growth trajectory beyond 2030.

"The breadth of our portfolio together with continued investment in innovation supports sustained growth well past the end of the decade," the AstraZeneca CEO added.

AstraZeneca's new ambition comes after it hit its goal of achieving $45 billion in annual revenue last year, having first outlined the sales goal in 2014.

The pharma giant said it also intends to keep its core operating margins in the mid-30% range, while investing in R&D, having achieved margins of 34% in the first quarter of 2024.

On Monday, AstraZeneca said it is investing $1.5 billion in opening a new manufacturing site in Singapore to make antibody drug conjugates that are used to treat cancer.

Antibody drug conjugates let toxic drugs kill cancer cells while sparing healthy ones. AstraZeneca currently has two Food and Drug Administration approved antibody drug conjugates.

"This week's announced $1.5bn investment in ADC manufacturing is driven by a desire to ensure dual sourcing of key growth drivers," analysts at Citi, led by Peter Verdult, said.

-Louis Goss

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05-21-24 0419ET

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