April 25 (Reuters) - AstraZeneca sailed past market expectations for quarterly revenue and profit on Thursday, boosted by demand for its blockbuster drugs and steady sales from partnered medicines, and sending its shares up 6% in morning trading Thursday.
Oncology, the Anglo-Swedish drugmaker's top business, delivered a 26% jump in first-quarter sales to $5.12 billion.
CEO Pascal Soriot has rebuilt the company's pipeline of new drugs since taking the helm more than a decade ago, to make blockbusters such as lung cancer drug Tagrisso, leukaemia drug Calquence and Farxiga for diabetes.
Combined revenue from partnered medicines, such as breast cancer therapy Enhertu with Daiichi Sankyo and asthma medicine Tezspire with Amgen, jumped more than 60% in the quarter, bolstering overall growth.
The number two London-listed company by market value reported core earnings per share of $2.06 on a 19% year-on-year rise in total revenue to $12.68 billion. Analysts had expected a core profit of $1.92 per share on revenue of $11.84 billion, according to a company-compiled consensus.
"U.S. rights Research & Development (R&D) investment remains high but that's certainly bearing fruit, and with six Phase III trials initiated since the year end, there could be more to come," said Derren Nathan, head of equity research for Hargreaves Lansdown.
"Of course, there's a high likelihood that they won't all lead to new revenue streams, but the company's record of success is impressive."
R&D expenses rose about 18% to $2.7 billion, while sales, general and administration costs were up 13% on higher marketing spend for new drug launches.
AstraZeneca stuck to its forecast for total revenue and core earnings per share to increase by low double-digit to low teens percentages in 2024.
The company said two weeks ago it would raise its annual dividend by 7% this year, betting on a strong performance and cash generation from its top drugs and recent acquisitions.
Other businesses, such as rare diseases, and respiratory and immunology, also saw double-digit percentage growth in quarterly sales.
