AstraZeneca beats profit expectations on robust drug sales, U.S. demand
The beat is a boost for the drugmaker as the wider sector braces for U.S. tariffs on pharmaceutical imports and navigates pricing challenges after Trump's order pushing for prices in the U.S. to fall to what other countries pay.
The firm's shares rose around 1% in early trading on Tuesday.
AstraZeneca, the UK's largest-listed company by market value, in April had forecast only a limited impact from potential U.S. tariffs on pharmaceutical imports, and said it would be able to meet its annual outlook if the levies on European imports were similar to those in other industries.
A European Union-U.S. trade deal over the weekend will result in a 15% tariff on pharmaceuticals from the region.
The Anglo-Swedish drugmaker, which is targeting $80 billion in annual revenue by 2030, maintained its annual outlook and increased its interim dividend by 3%.
"Our strong momentum in revenue growth continued through the first half of the year and the delivery from our broad and diverse pipeline has been excellent," CEO Pascal Soriot said in a statement.
Sales of AstraZeneca's oncology drugs, which make up nearly half of its revenue and are being weighed down by changes in U.S. Medicare price negotiations, were up 18% at $6.31 billion at constant currency rates for the three-month period ended June 30.
Analysts at Jefferies said sales of key cancer drugs such as Tagrisso, Lynparza, Calquence, and Truqap and Imfinzi were ahead of expectations.
Total revenue grew 11% to $14.46 billion, with core earnings of $2.17 per share, with double-digit growth in the U.S., which makes up more than 40% of sales.
That compares with analysts' expectations of $14.15 billion and $2.16, respectively, according to a company-provided consensus.
AstraZeneca, which is hoping to move on from scandals in its second-biggest market, China, where it also faces minor fines related to cancer drugs, said it was also fighting several patent challenges from an individual against Tagrisso.
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