AstraZeneca Reports Strong Q4 Earnings, Discontinues Two Alexion Assets

AstraZeneca, one of the world's leading pharmaceutical companies, has reported a robust financial performance for the fourth quarter of 2024, surpassing analysts' expectations. However, the company has also announced the discontinuation of two rare disease assets acquired through its Alexion acquisition, highlighting the challenges and complexities of drug development in the pharmaceutical industry.

Q4 Financial Performance Exceeds Expectations

AstraZeneca's fourth quarter results for 2024 have impressed investors and analysts alike. The company reported total revenue of $14.90 billion, exceeding the consensus estimate of $14.23 billion. Net income for the quarter stood at $3.24 billion, also surpassing analysts' expectations of $3.21 billion.

The strong performance was largely driven by the company's oncology unit, which generated $5.34 billion in revenue, 4% ahead of consensus estimates. Key cancer drugs, including the antibody-drug conjugate Enhertu and the PARP inhibitor Lynparza, outperformed expectations.

For the full year 2024, AstraZeneca recorded total revenue of $54 billion, representing a 21% year-on-year increase at constant exchange rates. Looking ahead to 2025, the company projects high single-digit percentage growth in total revenue and low double-digit percentage growth in core earnings-per-share.

Rare Disease Portfolio Growth and Asset Discontinuations

AstraZeneca's rare disease portfolio, bolstered by its $39 billion acquisition of Alexion in December 2020, showed significant growth in Q4 2024. The segment recorded a 22% increase in revenue, reaching nearly $2.4 billion. Ultomiris, a key asset from the Alexion acquisition, saw a remarkable 33% surge in sales, generating nearly $1.1 billion in revenue.

Despite these positive results, AstraZeneca announced the discontinuation of two Alexion-developed rare disease assets. Vemircopan, an investigational small molecule drug targeting the alternative complement protein factor D, was discontinued based on safety and efficacy data from mid-stage studies. The company also halted development of ALXN1910, an early-stage enzyme replacement therapy for bone metabolism indications.

CEO Pascal Soriot addressed these discontinuations during a media call, stating that they are "part of the life in our industry" and reaffirming that the Alexion acquisition was a "fantastic" deal for AstraZeneca. He emphasized that in the biopharma industry, "some [products] die, some others are accelerated, some new ones come in."

Future Outlook and Pipeline Development

Despite the setbacks, AstraZeneca remains optimistic about its future prospects, particularly in the rare disease space. The company is working towards expanding Ultomiris into new indications, including hematopoietic stem cell transplantation-associated thrombotic microangiopathy, cardiac surgery-associated acute kidney injury, and IgA nephropathy.

Other growth drivers for the company include the inhaler Symbicort, the stroke therapy Brilinta, and Strensiq, another rare disease asset indicated for perinatal/infantile- and juvenile-onset hypophosphatasia.

Analysts from BMO Capital Markets have described AstraZeneca's 2025 growth projections as "achievable" and in line with consensus expectations, suggesting continued confidence in the company's strategic direction and pipeline development.