AstraZeneca (AZN) and Regeneron (REGN) beat COVID-19 blues, report strong Q3 results

Summary

• UK-headquartered biopharmaceutical major AstraZeneca’s total YTD 2020 revenue rose by 10% (at CER) while Q3 revenue grew 3% despite COVID-19-led disruptions.
• New medicines represented almost 52% of the total revenue and 34% of emerging markets. Astra also announced four regulatory approvals in the last five days.
• New York-headquartered Regeneron’s revenues during the third quarter climbed by 32% to US$2.29 billion on pcp, driven by EYLEA’s sales.
• The Company highlighted that the Phase 2/3 clinical trial results of REGN-COV2 showed significantly reduced levels of coronavirus.

During the current reporting season, several companies have reported losses due to the impact of the ongoing pandemic. However, in the healthcare sector, some companies have witnessed moderate to high growth in revenues. This is because there have always been opportunities in the healthcare space.

In this article, we will discuss two global healthcare stocks that recently reported promising results during Q3 FY2020- AstraZeneca and Regeneron.

AstraZeneca’s Resilient YTD 2020 performance

UK-based global biopharmaceutical player AstraZeneca (NASDAQ:AZN) is focused on the development as well as commercialization of prescription drugs across multiple therapy areas including oncology and cardiovascular, renal and metabolism (CVRM). Through its subsidiaries, the Company manufactures and distributes pharmaceutical and medical products. AZN has a robust pipeline with 17 medicines under Phase 3 clinical trial and significant lifecycle projects.

In the year to date (YTD), AstraZeneca has delivered excellent results, supported by a strategy of innovation-led sustainable growth. The earnings growth during the third quarter reflected revenue from collaboration as well as other operating income and expenses weighted towards Q4. The highlights are-

• Despite the impact of the ongoing COVID-19 pandemic, AstraZeneca’s total revenue was up by 10% at a constant exchange rate (CER).
• Sales in the new medicines segment improved by 36% (at CER). Oncology sales were up 24% at CER while new CVRM sales grew 10% at CER.
• Core operating profit of the Company rose by 13% despite lower OOI4.
• Oncology sales, at US$8.185 billion (YTD), represented 43% of the total revenue of the Company.

AstraZeneca’s against COVID-19

To combat the COVID-19, AstraZeneca, in collaboration with Oxford University, has developed a vaccine candidate that is in the late stages of clinical development. The Company anticipates providing data from the Phase 3 trial of its COVID-19 potential vaccine, AZD1222 before the end of 2020.

CEO of AstraZeneca, Pascal Soriot, said-

ALSO READ: AstraZeneca (AZN) Sells the rights of Two drugs to Cheplapharm for US$400 million

New medicines represented almost 52% of Total Revenue

• Total revenue from emerging markets increased by 6% to US$6.46 billion on a YTD basis.
• Globally, new medicines segment represented nearly 52% of total revenue and 34% of emerging markets revenue.
• New medicines delivered particularly promising development driven by Lynparza and Tagrisso in Oncology and Forxiga in New CVRM.

FY20 Financial guidance

• The Company indicated that FY20 financial guidance remains unchanged.
• AstraZeneca anticipates total revenue to increase by a high single-digit to a low double-digit percentage, and Core EPS is projected to surge by a mid-high-teens percentage.

AstraZeneca announces multiple approvals in the past four days

The biopharma giant announced multiple approvals across different geographies over the last couple of days. The recent approvals are highlighted below:

• 9 November - AstraZeneca’s wins EU approval for Calquence (acalabrutinib) for the treatment of CLL (chronic lymphocytic leukemia)
• 6 November - Brilinta (ticagrelor) approved in the US to lower the risk of stroke in patients with acute ischemic stroke
• 5 November – EU approves AZN/MSD’s Lynparza (olaparib) + bevacizumab for patients with homologous recombination deficient (HRD)-positive advanced ovarian cancer
• 5 November - AZN’s SGLT2 inhibitor Forxiga approved in EU for the treatment of heart failure in adults with T2D (type-2 diabetes).

Stock Information: On 9 November 2020, AstraZeneca ADS closed at US$54.49, up by 0.81% on NASDAQ. The market capitalization of AstraZeneca stood at US$141.860 billion.

Regeneron’s Third quarter 2020 Revenue Climbed 32%

A leading biotechnology player, Regeneron Pharmaceuticals Inc (NASDAQ:REGN), invents life-transforming therapies for patients having serious indications. Regeneron has eight FDA-approved treatments, and its several candidates are under development.

On 5 November 2020, the Company provided a business update and its financial outcomes for the 3^rd quarter of 2020.

• During the period, revenues climbed by 32% compared to pcp to reach US$2.29 billion.
• US net sales of EYLEA® soared 11% to US$1.32 billion as compared to 3Q 2019.
• Dupixent® global net sales climbed 69% to US$1.07 billion compared to pcp.
• FDA accepted for priority review Libtayo® for both basal cell carcinoma and advanced non-small cell lung cancer.
• Dupixent® received a breakthrough therapy designation to treat patients (≥12 years) with eosinophilic esophagitis.
• In October 2020, the FDA approved Inmazeb (REGN-EB3) for the treatment of Zaire ebolavirus infection in adult as well as pediatric patients.

Important milestone achieved in the fight against COVID-19 

Recently, Regeneron achieved a significant breakthrough in the fight against COVID-19 with Phase 2/3 trial results demonstrating that REGN-COV2 significantly reduced coronavirus levels and the requirement for additional medical consideration in non-hospitalized patients.

REGN-COV2 is a dual antibody therapy to the novel coronavirus.

• In October 2020, Regeneron updated the market with positive findings from an ongoing Phase 2/3 COVID-19 trial demonstrating that REGN-COV2 met all the primary as well as key secondary endpoints.
• The Company had submitted a request to the FDA for a EUA for REGN-COV2 in mild-to-moderate COVID-19 patients who are at risk for inadequate effects.

On 5 November 2020, Regeneron announced that the independent DMC (data monitoring committee) for the UK-based RECOVERY trial recommends continuing evaluation of REGN-COV2 in all hospitalized patients.

The DMC evaluated available data for safety and efficacy in total 15,545 patients, including 325 patients in the arm randomized to administer either REGN-COV2 or control.

Stock Information: On 9 November 2020, the share price of REGN was last noted at US$570.00, up by 0.43% on NASDAQ. The market capitalization of Regeneron was recorded at US$60.561 billion.