AstraZeneca quarterly results soar on cancer drug sales and US growth

AstraZeneca has reported record second quarter revenues, propelled by robust oncology sales and expansion in the United States, surpassing City expectations. The pharmaceutical company’s total revenue rose by 11 per cent to $14.5 billion, ahead of analyst consensus forecasts of $14.2 billion, as its broad and diverse portfolio of medicines continued to deliver strong growth.

Sales of cancer treatments increased by 18 per cent to reach $6.3 billion, reinforcing AstraZeneca’s position as a leader in oncology. Chief executive Sir Pascal Soriot credited the continued success to the company’s innovative development pipeline, which recently delivered twelve positive phase III clinical trial results, including for baxdrostat, gefurulimab, and Tagrisso.

The Cambridge-based group continues to face headwinds from pricing pressures and international trade uncertainties. US President Trump this week reiterated threats to impose tariffs on pharmaceuticals, casting a potential shadow over future trading conditions. Despite these pressures, AstraZeneca reaffirmed its guidance for the year, forecasting a high single digit percentage increase in total revenue and core earnings per share growth in the low double digit range.

AstraZeneca recently pledged to invest $50 billion in the United States by 2030, its most significant commitment yet, including the company’s largest ever manufacturing investment in Virginia. The US now represents 44 per cent of the group’s sales, a figure expected to reach half of total revenues by the decade’s end.

Shares in AstraZeneca rose 1.1 per cent to £109.06 on the London Stock Exchange following the announcement, leaving them up 2.5 per cent since the start of the year. The interim dividend was increased by 3 per cent to 76.7p per share. Management has voiced frustrations with the UK’s regulatory landscape, particularly criticism of the NHS pricing scheme and challenges in securing approval for new medicines from the National Institute for Health and Care Excellence. Reports this month suggest chief executive Soriot has privately expressed interest in shifting the company’s stock market listing to the US, though AstraZeneca has declined to comment publicly.

China remains an important market and driver for growth, accounting for 12 per cent of group revenues in the second quarter, with sales increasing by 5 per cent to $1.7 billion. The company has continued to navigate the fallout of recent investigations by Chinese authorities, including allegations of illegal import of medicines and possible medical insurance fraud. AstraZeneca’s international head, Leon Wang, is reportedly still in detention nine months after his arrest in Shenzhen.

The company’s solid performance, combined with strategic investments and a strong research pipeline, places it in a resilient position as it navigates evolving global challenges.