AstraZeneca accelerates, while Bayer slows: the quarterly results of the two big pharma highlight a contrast between the strong AstraZeneca growth, driven by increased sales in oncology and rare diseases, and the Bayer's difficulty, penalized by the weakness of the agricultural division Crop Science. AstraZeneca thus sees its annual forecasts higher, while Bayer suffers the negative impact of the decline in the agricultural sector, reflecting on its overall results.
AstraZeneca: turnover up 19%
AstraZeneca, based in the UK and Sweden, continued to thrive in the first nine months of 2024, closing the period with a total turnover of $39,2 billion, up 19%. Growth was mainly supported by sales of drugs in portfolio, which grew by 19%, and by strategic partnerships.
Performance by division
Le main therapeutic areas of AstraZeneca have contributed significantly to the growth:
- Oncology: +22% turnover compared to the previous year, thanks to the growing demand for innovative drugs in the treatment of tumors.
- Cardiovascular, Kidney and Metabolism (CVRM): +21%, supported by advanced treatments for chronic diseases.
- Respiratory and Immunology (R&I): +24%, reflecting a sharp increase in the adoption of therapies for respiratory diseases.
- Rare diseases: +14%, a segment that has shown a stable increase despite the difficulties related to market penetration for less widespread pathologies.
AstraZeneca: 2024 guidance improved
AstraZeneca's Core EPS rose 11% to $6,12. In the third quarter, the company saw total revenue and Core EPS growth of 21% and 27%, respectively, beating initial forecasts. As a result, AstraZeneca updated the guidance for the full year 2024, now expecting total revenue and core EPS growth of around 19%.
The CEO of AstraZeneca, Pascal Soriot, highlighted the company’s broad growth momentum and continued demand for its products in the oncology and rare disease sectors. “This continued growth,” Soriot said, “looks set to continue through 2025, providing a solid foundation to realise our 2030 ambition.”
Bayer: agricultural division weighs on accounts
Unlike AstaZeneca, Bayer, a pharmaceutical and agricultural giant based in Germany, has instead encountered difficulties in the third quarter of 2024, with total sales of €9,97 billion, up marginally by 0,6% on a currency and portfolio adjusted basis, but with a significant decline in profitabilityThe weakness of the Crop Science Division, the main driver of revenues in the agricultural sector, impacted the overall results.
The Crop Science division suffered from the agricultural market slowdown, with a decline in demand for products such as glyphosate and increased competition, especially in Latin America. The loss of value of agricultural assets led to write-downs that weighed on the balance sheet, highlighting Bayer's challenge in maintaining competitiveness in a difficult economic environment.
Bayer: EBITDA down 25,8%
THEEbitda before the extraordinary voices is decreased by 25,8% to 1,25 billion euros, including a negative currency effect of 94 million euros. The group also suffered a negative impact of 436 million euros on overall revenues, due to the change in exchange rates. In addition, theNet income reported a loss of 4,18 billion euros, confirming Bayer's vulnerability to fluctuations in the agricultural market.
Il free cash flow Bayer's share price fell 29,4 percent, impacted by lower operating cash flowNet debt also fell by 4,7% thanks to positive cash flows from operating activities, a sign of resilience that could allow Bayer to face future financial challenges with greater resilience.
Bayer, guidance revised in some parts
“We have rapidly scaled up the new operating model and significantly leveled the Pharma pipeline,” said CEO Bill Anderson – “We are confirming our group guidance for 2024 across almost all metrics albeit with some downward revisions for EBITDA, now expected between €10,4 billion and €10,7 billion.”
“Overall, we expect a muted outlook on revenue and net profit next year with likely declining profits – said the CFO Wolfgang Nickl – We plan to accelerate our cost and efficiency measures to partially offset and remain focused on cash conversion.”
