AstraZeneca Reports Tagrisso Sales Exceed $5 Billion and COVID-19 Vaccine Revenue Nears $4 Billion in 2021

On February 10, AstraZeneca announced its financial results for 2021. The company achieved a total revenue of $37.417 billion for the year, representing a 41% increase (38% at CER), with Q4 revenue growing by 62% to reach $12.011 billion. The COVID-19 vaccine contributed $3.917 billion in sales in 2021. Excluding the vaccine, AstraZeneca's total revenue still grew by 26%.

AstraZeneca Envisions Growth Prospects for the Next Three Years and BeyondAstraZeneca has outlined its growth prospects for the next three years and beyond. Backed by several blockbuster drugs, AstraZeneca aims to achieve industry-leading double-digit growth from 2022 to 2025. Beyond 2025, AstraZeneca will maintain a continuously growing revenue base through lifecycle management of marketed drugs and expand into multiple therapeutic areas with high unmet needs by developing late-stage key products that have the potential to be first or best-in-class new drugs.

China is one of the important sources of revenue for AstraZeneca, achieving a revenue of $6.011 billion in 2021, a year-on-year increase of 12%. However, due to the price reduction pressure from medical insurance negotiations and centralized procurement, AstraZeneca's growth in China slowed in the second half of 2021, with revenue in Q4 declining by 4% year-on-year. Meanwhile, in the financial guidance for 2022 provided in the earnings report, AstraZeneca expects its performance in China to decline by a mid-single-digit percentage in 2022, mainly due to the ongoing impact of centralized procurement and medical insurance.

AstraZeneca's Revenue by Region in 2021

AstraZeneca's 12 Products Generated Over $1 Billion in Global Sales in 2021. The COVID-19 vaccine (Vaxzevria) and eculizumab (Soliris), acquired through the purchase of Alexion, are new entries on this year’s list, ranking 2nd and 7th respectively with revenues of $3.917 billion and $1.874 billion among AstraZeneca’s product portfolio. As pharmaceutical companies in and outside China have been releasing their earnings this year, it is evident that COVID-related products have significantly contributed to the high revenues of many enterprises, a trend that will likely continue into next year. Additionally, the acquisition of Alexion has provided strong momentum for AstraZeneca's growth. Beyond eculizumab, another similar product, Ultomiris, also generated $688 million in revenue, marking a 27% increase year-over-year.

Product Sales and Year-on-Year Change

In terms of specific therapeutic areas, the oncology sector contributed the highest revenue, accounting for 37% of the total revenue (compared to 43% in 2020), achieving an income of $13.663 billion, representing a year-on-year increase of 21%.

Sales Situation in Various Fields

Tagrisso Hits $5 Billion Mark for First Time This Year, Up 13% Year-over-Year. U.S. sales reached $1.78 billion (+14%), driven primarily by expanded patient populations in first-line and adjuvant treatment indications, though partly offset by reduced use in second-line therapy and diagnostic challenges due to the pandemic. In emerging markets, including China, Tagrisso’s annual sales grew 6% to $1.336 billion. AstraZeneca noted that the updated national reimbursement drug list, effective in March, included both first-line and second-line indications for Tagrisso, with new demand almost completely offsetting the impact of price reductions.

Durvalumab (Imfinzi) generated $2.412 billion in revenue in 2021, a year-on-year increase of 16%. New demand from extensive-stage small cell lung cancer (ES-SCLC) contributed to this growth. In the United States, sales of durvalumab increased by 5% to reach $1.245 billion despite the negative impact of the COVID-19 pandemic on lung cancer diagnosis. Emerging markets, including China, grew by 68% to reach $277 million.

Lynparza (Olaparib) Achieved $2.748 Billion in Sales with 23% Growth in 2021, Including a $400 Million Collaboration Sales Milestone Revenue in Q4 2021. AstraZeneca and Merck Previously Reached a Collaboration Agreement in 2017 to Jointly Develop and Commercialize Olaparib.

In the United States, Olaparib contributed $1.087 billion in revenue (+24%), mainly due to sales growth in ovarian cancer, breast cancer, and prostate cancer. Globally, Olaparib is the leader among PARP inhibitors, with a 35% growth in the European region reaching $618 million in sales, a 21% growth in Japan achieving $199 million in sales, and a 41% growth in emerging markets reaching $384 million in sales. The revenue growth in emerging markets was primarily driven by increased demand after the drug's first-line treatment for BRCA-mutated ovarian cancer was included in China's 2021 updated medical insurance directory in March.

BTK inhibitor acalabrutinib (Calquence) and HER2 ADC Enhertu, developed in collaboration with Daiichi Sankyo, are also key oncology pipeline products of Daiichi Sankyo. The former generated revenue of $1.238 billion, representing a 136% year-over-year increase, while the latter achieved revenue of $214 million, marking a 123% year-over-year growth.

CRVM Pipeline (Cardiovascular, Renal and Metabolic) Accounts for 21% of AstraZeneca's Revenue (27% in 2020), with Key Products Including Dapagliflozin (Farxiga), Ticagrelor (Brilinta), and Rosuvastatin (Crestor). The Latter Two Have Gradually Declined Under the Impact of Generic Drugs, but the Growth of SGLT-2 Inhibitor Dapagliflozin Remains Strong, Generating $3 Billion in Revenue for the Full Year of 2021, a Year-on-Year Increase of 49%. Sales in Emerging Markets Grew by 70% to Reach $1.195 Billion, Benefiting from Its Entry into China’s National Reimbursement Drug List Through Negotiations in 2020.

Respiratory and Immunology (R&I) also accounts for 20% of AstraZeneca's revenue, generating $6 billion in revenue.

Rare Disease Pipeline Mainly Acquired Through the Acquisition of Alexion. This acquisition, valued at up to $39 billion, was finally completed on July 21, 2021, and the resulting rare disease drug revenue accounted for 8% of AstraZeneca's total revenue in the fiscal year 2021.

In the COVID-19 field, AstraZeneca has a vaccine called Vaxzevria and a long-acting neutralizing antibody named Evusheld. The vaccine revenue reached 3.917 billion US dollars, and AstraZeneca has issued orders for 963 million doses of the vaccine worldwide. The main sales markets for AstraZeneca's vaccines are emerging market countries outside of China, with income from this part exceeding half of the total vaccine revenue (2.24 billion US dollars).

Long-Acting Neutralizing Antibody Evusheld (AZD7442) Receives FDA EUA Approval on December 8, 2021, Generating $85 Million in Revenue by December 31 – $66 Million from Europe, $19 Million from Emerging Markets, and No Current Revenue from the U.S. Evusheld is the First Approved Neutralizing Antibody Combination for Prevention and Offers Long-Lasting Protection, with a Single Intramuscular Injection Providing Preventive Immunity for Up to 12 Months, Over Three Times Longer Than Conventional Neutralizing Antibodies. Upon Approval, AstraZeneca Stated That Evusheld Demonstrates Neutralizing Effects Against All Previous SARS-CoV-2 Variants; Preliminary Preclinical Data Indicates That Omicron (B.1.1.529) Binding Sites Related to Evusheld Are Not Associated with Immune Evasion, While Clinical Data Is Still Under Evaluation.

In 2021, AstraZeneca reported 14 positive Phase III clinical data for 9 new drugs, and 5 new drugs received a total of 22 regulatory approvals in major markets. The following key milestones were achieved after the third quarter:

Key pipeline changes in Q4 are as follows: Newly entered clinical drugs/new therapies include 5 products: AZD5055, AZD7503, AZD8205, AZD8630, and AZD8701 in combination with Imfinzi. Three products were removed from Phase I clinical trials, including AZD0284 for psoriasis/respiratory diseases, the inhaled JAK inhibitor AZD0449 for asthma, and the anti-FcRn monoclonal antibody ALXN1830 for autoimmune hemolytic anemia.

New Projects in Pipeline from Phase I to Market Launch

Items Removed at Each Stage

AstraZeneca also announced potential milestones from 2022 to 2023: