Drug giant AstraZeneca reported rising revenues and a return to profitability during the third quarter despite falling sales of its Covid-19 vaccine around the world.

The company has now abandoned plans to seek US regulatory approval for Vaxzevria, which it developed in conjunction with Oxford University, and will instead focus efforts elsewhere. The vaccine was one of the first Covid jabs to be developed and was quickly approved for use in the UK, Europe and other parts of the world, but not in the US where regulators wanted more data.

During the three months to the end of September, sales of Vaxzevria fell to $173 million (£152m) from $1.05 billion in the same period a year earlier.

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“As the primary vaccination needs of the US are being met already, AstraZeneca has decided that it will not submit a biologics licence application for Vaxzevria in the US,” the group said. “The company will continue to focus its efforts on ensuring availability of Vaxzevria elsewhere around the world, including submissions for its use as a booster.”

Despite fading sales of its Covid vaccine, AstraZeneca posted a 19 per cent increase in quarterly revenues to $11bn amid robust growth from other higher-value medicines such as Farxiga for diabetes and cancer treatment Tagrisso. Pre-tax profits surged to $922m from a loss of $2bn a year earlier when the group was selling Vaxzevria at cost.

The result was better than analysts had expected, leading AstraZeneca to raise its earnings outlook for the full year. The group’s shares finished yesterday’s trading 312p higher at 11,158p, an increase of nearly 3%.

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“What’s really exciting is its continuing high hit rate in terms of R&D success,” said Derren Nathan, head of equity research at Hargreaves Lansdown.

“Nineteen major regulatory approvals since the last update help to underpin the outlook for sustainable long-term growth, and there is likely to be more to come with 18 Phase III read-outs expected in 2023."

The results included a $1.7bn contribution to sales of medicines acquired with US-based Alexion, a $39bn buy-out that closed in July.

Last month the group announced that it will take over another smaller US rival, LogicBio, in a $68m deal. LogicBio is developing gene editing therapies to treat rare pediatric diseases.