Investing.com – UK-listed shares in AstraZeneca (LON:) rose in morning trade on Tuesday after the pharmaceutical giant announced a new revenue target of 2030.
In a statement ahead of an investor event touting a “new era of growth,” AstraZeneca said it now expects to achieve total revenues of $80 billion by the start of the next decade. In 2023, the company reported sales of $45.8 billion.
The company said it plans to reach this goal through a “significant” expansion of its existing oncology, biologics and rare disease portfolio, and through the launch of 20 new drugs expected before the end of the current decade.
“The breadth of our investment portfolio coupled with continued investment in innovation supports sustainable growth beyond the end of the decade,” CEO Pascal Soriot said in a statement.
AstraZeneca also aims to deliver an adjusted operating margin in the mid-30s percentile range after 2026, citing a strategic commitment to R&D as well as a focus on productivity. Analysts at Bernstein said they assume the outlook equates to a core EBIT range of 35% to 37% by 2030.
Analysts noted that Bloomberg consensus estimates were forecasting 2030 total revenue and core income of $67 billion and a margin of 40%, respectively.
“Given AstraZeneca's excellent track record since 2017, we believe that 2030 sales guidance will be well received by the investment community,” Bernstein analysts said.
“However, given that the consensus margin forecast for 2030 of 40% is well above the mid-30s range that (AstraZeneca) is targeting now beyond 2026, we believe there will be significant debate today about the potential trade-off between growth and growth.” Profitability.”
