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AstraZeneca: Dividend Overview and Recent Developments

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Dividend overview

On July 26, AstraZeneca announced a dividend of $0.45, which was paid on September 10. The dividend yield was 3.52%. AstraZeneca paid a dividend of $0.45 on September 10 to shareholders of record on August 10.

AstraZeneca also delivered an interim dividend of $0.95 in February. Wall Street analysts expect AstraZeneca to deliver a dividend of $0.96 in February 2019 and $0.46 in August 2019.

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Recent developments

In September, the European Commission (or EC) approved the marketing authorization for AstraZeneca’s Imfinzi monotherapy for the treatment of individuals with locally advanced unresectable NSCLC (non-small cell lung cancer). The EC approved Imfinzi for the treatment of unresectable NSCLC patients whose tumors express PD-L1 in over 1.0% of the tumor cells and whose disease didn’t progress after platinum-based CRT (chemotherapy and radiation therapy). The European Commission’s approval of Imfinzi was based on the data from the Phase 3 PACIFIC study.

In September, the Committee for Medicinal Products for Human Use (or CHMP) of the European Medicines Agency (or EMA) recommended a positive opinion on a variation update for AstraZeneca’s Bydureon. The CHMP recommended approval for inclusion of cardiovascular data from the Exenatide Study of Cardiovascular Event Lowering (or EXSCEL) in the European label. The label expansion of Bydureon is expected to further strengthen the drug’s commercialization capabilities.

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Financials in a nutshell

In the first half, AstraZeneca (AZN) generated revenues of $10.3 billion, reflecting an ~1.0% YoY (year-over-year) decline. In the first half, AstraZeneca reported operating profit and EPS of $1.5 billion and $0.54, respectively, reflecting an ~21.0% and 32.0% YoY decline.

AstraZeneca’s oncology business primarily pushed the revenue growth in the first half. In the first half, AstraZeneca’s oncology business generated revenues of $2.7 billion, which represents ~42.0% YoY growth.

Analysts’ recommendations

Of the five analysts tracking AstraZeneca in September, three recommended a “strong buy.” One analyst recommended a “buy,” and one analyst recommended a “hold” rating.

On September 26, AstraZeneca had consensus 12-month target price of $41.66, which represents an ~7.68% return on investment over the next 12 months.

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