AstraZeneca raises guidance again as oncology drug sales soar to $5.6 billion

AstraZeneca has raised its annual guidance for the second time this year after sales of its cancer drugs soared in the third quarter.

The pharmaceutical giant expects overall sales and earnings per share to increase by a high percentage at constant exchange rates in 2024, having previously guided low percentage growth in both categories.

Turnover rose 21 percent to $13.6 billion in the three months to September 30.

Sales of oncology drugs rose 22 percent to $5.6 billion, supported by double-digit percentage growth in lung cancer treatments Tagrisso and Imfinzi and non-Hodgkin lymphoma drug Calquence.

The trade further benefited from sales of type 2 diabetes drug Farxiga, its most popular selling drug, which soared 27 percent to $1.9 billion, and rare disease drug Ultomiris, which rose 35 percent. cent to more than 1 billion dollars.

As a result, the FTSE 100 group’s core earnings and operating profits each grew 27 per cent to $2.08 per share and $4.3 billion respectively.

Pascal Soriot, chief executive of AstraZeneca, said: “We are very encouraged by the broad underlying momentum we are seeing across our business in 2024, and growth looks set to continue into 2025, providing a solid foundation to deliver on our 2030 ambition.” .’

AstraZeneca also announced plans to spend $3.5 billion through 2026 to bolster its research and manufacturing capabilities in the United States.

Among other things, the company intends to build a new research and development center in Massachusetts and a biologics manufacturing plant in Maryland.

Soriot said the investment reflects the “attractiveness of the business environment along with the quality of talent and innovation capabilities here in the United States.”

AstraZeneca already employs 17,800 people across the United States, but expects to add more than a thousand high-skilled jobs through the expansion.

AstraZeneca Stock They rose just 0.45 per cent to 10,030 pence on Tuesday morning and have fallen about 16 per cent in the past six months.

Sheena Berry, a healthcare analyst at Quilter Cheviot, said Chinese authorities’ investigation into AstraZeneca had shaken the company’s share price.

“Clearly, the outcome is unknown and that will worry investors,” he said, adding that “any quick resolution would be very welcome.”

AstraZeneca confirmed last week that its Chinese director, Leon Wang, had been detained, while two other executives and two former bosses were under investigation.

About 13 percent of AstraZeneca’s sales last year came from China, where the group signed a licensing deal worth up to $2 billion in October to develop a drug to combat high cholesterol levels.

“To the company’s knowledge, the investigations include allegations of health insurance fraud, illegal drug importation and personal information breaches,” AstraZeneca said.