(CTN News) – The shares of AstraZeneca (AZN) jumped more than 4% in early trading on Friday after AstraZeneca reported higher-than-expected revenue on strong sales of its cancer drugs and announced that it would acquire the rare disease gene therapy portfolio held by Pfizer (PFE).
According to a news report by Reuters, AstraZeneca’s rare disease arm, Alexion, plans to buy Pfizer’s portfolio of pre-clinical gene therapies for up to $1 billion, plus tiered royalties on sales.
In the third quarter of 2023, the transaction is expected to be completed.
In addition to the move, the British pharmaceutical giant will strengthen its capabilities in genomic medicine, for which it also bought LogicBio last year for $68 million at a premium of 660%.
AstraZeneca has increased its portfolio of products by splurging on buyouts in recent times
As part of the company’s effort to strengthen its development of treatments for hypertension and chronic kidney disease, the company recently acquired CinCor Pharma, a clinical-stage biopharmaceutical company, for $1.3 billion in order to enhance its research and development activities.
In addition to acquiring Alexion in December 2020 for $39 billion, AstraZeneca is strengthening its presence in immunology in order to develop medicines for rare diseases that can be used by the company in the future.6
COVID vaccine revenues fall as cancer drug sales increase
In the quarter, AstraZeneca reported a 6% increase in revenue to $11.4 billion, which was well above the $10.97 billion analysts expected.
The company was able to offset the trend of declining COVID-19 sales by growing at a double-digit rate in other areas such as its cancer drugs. Its revenue increased 6% to $11.4 billion, which was higher than analysts’ expectations of $10.97 billion.
The adjusted profit per share was $25 higher at $2.15 than the $1.98 that was expected, which represents a 25% increase over the previous year’s results.