AstraZeneca profit jumps 23% on cancer drugs as it unveils major savings plan

AstraZeneca, the UK's largest pharmaceutical company, reported a 23% increase in profit after tax to £3.12 billion for the July to September period, primarily due to its cancer treatments. This is a significant improvement from the 2% rise in the previous quarter. The company unveiled a plan to achieve $1.5 billion in annual savings, which will be reinvested in their development pipeline.

Oncology, their largest business, contributed 48% to total sales, with a 17% increase to $7.8 billion. This growth was driven by lung cancer drug Tagrisso and immunotherapy Imfinzi. Core earnings per share rose 17% to $2.79. The cost-cutting plan, named Reshaping for Sustainable Growth, will entail up to $2 billion in one-off restructuring charges and is expected to be completed by the end of 2029.

CEO Pascal Soriot stated that the company is on track to deliver their 2030 ambition, despite pressure from older medicines. Sales of Farxiga fell 25% to $1.6 billion due to cheaper generic versions in the US, while Brilinta lost patent protection. The company also faces volume-based procurement in China, which forces them to reduce prices for large orders.

AstraZeneca expects revenue to grow by mid-to-high single-digit percentages and core earnings per share by low double-digit percentages in 2026. They remain on track for $80 billion in annual revenue by 2030, with half expected to come from the US. The company has been expanding its presence in the American market, listing shares in New York and pledging to invest $15 billion in China by 2030.

They have reported 12 positive results from late-stage trials so far this year and are developing a weight-loss treatment to compete with Novo Nordisk's Wegovy and Eli Lilly's Mounjaro. AstraZeneca's shares increased by over 4.5% in early trading on Friday.