AstraZeneca beats profit expectations on robust drug sales, US demand
The beat is a boost for the drugmaker as the wider sector braces for US tariffs on pharmaceutical imports and navigates pricing challenges after Trump's order pushing for prices in the US to fall to what other countries pay.
The firm's shares rose around one per cent 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 US 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–US trade deal over the weekend will result in a 15 per cent tariff on pharmaceuticals from the region.
The Anglo-Swedish drugmaker, which is targeting US$80 billion in annual revenue by 2030, maintained its annual outlook and increased its interim dividend by three per cent.
"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 US Medicare price negotiations, were up 18 per cent at US$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, Truqap and Imfinzi were ahead of expectations.
Total revenue grew 11 per cent to US$14.46 billion, with core earnings of US$2.17 per share, and double-digit growth in the US, which makes up more than 40 per cent of sales.
That compares with analysts' expectations of US$14.15 billion and US$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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