AstraZeneca Reports Strong Profit Growth Despite Liverpool Vaccine Plant Cancellation

British pharmaceutical giant AstraZeneca has reported a significant 38% increase in pre-tax profits to £8.7 billion for 2024, driven by robust sales across its cancer, lung, and immunology treatments portfolio. The company’s revenues surged by 21% to reach £43 billion, cementing its position as Britain’s largest listed company.

Chief Executive Pascal Soriot addressed the recent controversy surrounding the cancelled £450 million vaccine plant expansion in Liverpool’s Speke facility. He expressed deep disappointment over the project’s abandonment, citing an inability to establish a viable business case without adequate government support. The original agreement, secured under the Conservative government with £90 million in grants, faced revision when Labour assumed power and implemented fiscal constraints.

The pharmaceutical leader dismissed suggestions of tension with the UK government, revealing that AstraZeneca had actually planned to increase its investment beyond £500 million. Soriot highlighted the company’s successful international ventures, particularly referencing a £1.2 billion investment in Singapore, where substantial government support has been secured for developing advanced cancer treatments.

Market response to the financial results was overwhelmingly positive, with AstraZeneca’s shares climbing 5.7%, helping propel the FTSE 100 index beyond 8,700 points to establish a new intraday high. The company maintained its ambitious £64 billion revenue target for 2031, with seven new medicines scheduled for late-stage results this year.

The company also provided clarity on its ongoing Chinese investigation, where several executives, including local business president Leon Wang, remain detained. The case centres on alleged unpaid importation taxes of approximately £720,000, with potential fines up to five times that amount if found liable.

Looking ahead, AstraZeneca projects a slight moderation in total sales growth for the coming year, forecasting high single-digit percentage increases. The company’s cancer and respiratory divisions continue to lead growth, posting impressive annual revenue increases of 24% and 25% respectively.