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Reuters
29-07-2025
- Business
- Reuters
AstraZeneca seeks US drug price cuts amid expansion plans, strong demand
July 29 (Reuters) - AstraZeneca (AZN.L), opens new tab has proposed price cuts to its drugs in the United States, its CEO said on Tuesday, days after unveiling a $50 billion investment to expand there, as President Donald Trump pressures pharmaceuticals companies to lower costs. Speaking to journalists after second-quarter revenue and profit beat expectations, CEO Pascal Soriot said Trump's administration was reviewing the company's proposals. He did not specify which drugs were included. Trump has repeatedly threatened tariffs as he also pushes drugmakers to reduce prices to what other countries pay. However, he signalled earlier this month that companies would be given a year to 18 months to "get their act together" before any sector-specific levies take effect. "We definitely support the idea of rebalancing with some reduction of pricing levels in the U.S., and some increase, we're not talking about massive increases, in Europe," AstraZeneca's Soriot said. He added he expects all medicines for U.S. patients to be produced locally within a few months, and is also considering selling some medicines to customers directly. AstraZeneca shares rose as much as 3% after its results, but pared some gains to trade up 1.6% by 1214 GMT. "The big uncertainty, unsurprisingly, remains U.S. tariffs and Most Favoured Nation pricing in the pharmaceutical sector. AstraZeneca has looked to get ahead of this uncertainty," said Sheena Berry, a healthcare analyst at Quilter Cheviot. The U.S. accounted for more than 40% of AstraZeneca's revenue in 2024. The UK's largest-listed company by market value had prioritised the U.S. market - the world's largest, worth $635 billion - even before Trump's return to office. AstraZeneca's efforts are paying off as strong U.S. demand, and robust sales of newer cancer, heart and kidney disease medicines drove total revenue for the second quarter 11% higher to $14.46 billion, on a constant currency basis. It logged double-digit growth in the U.S. despite headwinds from changes in U.S. Medicare price negotiations, while sales of cancer drugs including Tagrisso, Lynparza, Calquence, Truqap and Imfinzi beat expectations. Core earnings stood at $2.17 per share. Analysts were expecting $2.16, from $14.15 billion in sales, according to a company-provided consensus. AstraZeneca is betting on a wave of expected launches of 20 new medicines and its U.S. expansion to reach $80 billion in annual revenue by 2030 and offset generic competition. On Tuesday, it maintained its 2025 outlook and increased its interim dividend by 3%. The drugmaker in April forecast only a limited impact from potential U.S. tariffs, adding 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 most goods, including pharmaceuticals, from the region.
New Straits Times
29-07-2025
- Business
- New Straits Times
AstraZeneca beats profit expectations on robust drug sales, US demand
LONDON: AstraZeneca beat second-quarter profit forecasts on robust sales of cancer, heart and kidney disease drugs and strong demand in the US, where it has invested US$50 billion to expand amid tariff threats from President Donald Trump. 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.
Yahoo
21-05-2025
- Business
- Yahoo
AstraZeneca Stock Declines 6% in 3 Months: Time to Buy the Dip?
AstraZeneca AZN stock has declined 6.4% in the past three months. Although AstraZeneca faces its share of challenges, a significant portion of this price decline is attributed to broader market uncertainties and a volatile macroeconomic environment. The sky-high tariffs imposed by the United States and retaliatory tariffs by China and some other countries hurt global stock markets. Though the massive tariffs imposed by the United States and China are now on a pause, it is only a temporary suspension, and no one knows what will happen after the 90-day tariff suspension ends. The uncertainty around tariffs and trade production measures remains, slowing down economic growth. Although pharmaceuticals have been exempted from tariffs in the first round, they could be Trump's target in the next round, considering the President's goal to shift pharmaceutical production back to the United States, primarily from European and Asian countries. Trump and the Republican government also continue to stress on the control of drug prices with the latest attempt being his 'most favored nations' policy.' Let's understand AZN's strengths and weaknesses to better analyze how to play the stock in an uncertain macro environment. AstraZeneca boasts a diversified geographical footprint as well as a product portfolio with several blockbuster medicines. AstraZeneca now has 16 blockbuster medicines in its portfolio with sales exceeding $1 billion, including Tagrisso, Fasenra, Farxiga, Imfinzi, Lynparza (partnered with Merck [MRK]), Calquence and Ultomiris. These drugs are driving the company's top line, backed by increasing demand trends. The company is confident that the growth will continue in 2025. Almost every new product it has launched in recent years has done well. Newer drugs like Wainua, Airsupra, Saphnelo, Datroway (partnered with Daiichi Sankyo) and Truqap are also expected to continue to contribute to top-line growth in 2025. Oncology is AstraZeneca's biggest segment. The company is working on strengthening its oncology product portfolio through label expansions of existing products and progressing oncology pipeline candidates. Oncology sales (comprising around 41% of AstraZeneca's total revenues) rose 13% in the first quarter of 2025, generating $5.6 billion in sales. The strong oncology performance is being driven by medicines such as Tagrisso, Merck-partnered Lynparza, Imfinzi, Calquence and Daiichi Sankyo-partnered Enhertu. A key new cancer drug approval was that of Truqap for HR-positive, HER2-negative (HR+ HER2-) breast cancer. The drug has seen a robust launch, recording sales of $430 million in 2024 and $132 million in the first quarter of 2025. In January this year, AstraZeneca and partner Daiichi's drug, Datroway, was approved by the FDA for HR+ HER2- breast cancer, while a regulatory application is under review for EGFR-mutated non-small cell lung cancer (NSCLC). Datroway witnessed encouraging early launch signals in the United States. AstraZeneca expects continued growth of its oncology medicines in 2025, particularly Tagrisso, Enhertu and Imfinzi, despite the incremental impact of the Part D redesign. The impact of Part D redesign hurt sales of AZN's older drugs, Tagrisso, Lynparza and Ultomiris, as well as newer drugs, Truqap and Wainua, in the United States in the first quarter of 2025, with the trend expected to continue through the rest of the year. AstraZeneca expects Farxiga and Lynparza to be included in the volume-based procurement plans in China in mid-2025, which can hurt sales of these drugs in the country. Pricing and competitive pressure in Europe and generic competition in some emerging markets are expected to hurt sales of some drugs. Brilinta generics are expected to be launched in the United States in 2025. This will hurt sales of the drug. Biosimilar versions of Soliris were launched in the United States in March 2025, which, along with successful conversion to Ultomiris, biosimilar pressure in Europe and unfavorable order timing in certain tender markets, is expected to lead to a continuous decline in sales of Soliris. AstraZeneca is facing ongoing investigations at its China subsidiary. The Chinese authorities are investigating some current and former AstraZeneca employees at its China subsidiary for medical insurance fraud, illegal drug importation and personal information breaches. AZN stock has risen 8.2% so far this year againsta decrease of 3.1% for the industry. The stock has also outperformed the sector and S&P 500 index, as seen in the chart below. Image Source: Zacks Investment Research From a valuation standpoint, AstraZeneca is slightly expensive. Going by the price/earnings ratio, the company's shares currently trade at 14.93 forward earnings, slightly higher than 14.74 for the industry. However, AZN's stock is trading below its 5-year mean of 18.05. The stock is also much cheaper than other large drugmakers like Eli Lilly LLY and Novo Nordisk NVO. Eli Lilly and Novo Nordisk currently dominate the obesity space. Image Source: Zacks Investment Research The Zacks Consensus Estimate for 2025 earnings has risen from $4.47 per share to $4.50 per share over the past 60 days. For 2026, earnings estimates have risen from $4.95 per share to $4.98 per share over the same timeframe. Image Source: Zacks Investment Research Despite the potential impact from Part D redesign, AstraZeneca expects total revenues to grow by a high single-digit percentage at CER in 2025. Growth momentum in Oncology and CVRM(cardiovascular, renal and metabolism) segments is expected to continue in 2025. However, in Rare Disease, though AstraZeneca expects growth in 2025, it will be at a slower pace than in 2024. Regarding the potential impact of tariffs, AstraZeneca had a positive tone on the first-quarter conference call. The company said it has limited commercialized finished medicines imported to the United States from China, which lowers its exposure to potential China tariffs on pharmaceuticals. It also has a substantial and growing manufacturing footprint in the United States, and the majority of its medicines sold in the United States are manufactured domestically. It does import some medicines from Europe but believes that if tariffs on pharmaceutical imports from Europe are implemented in a similar range as other industries, it will be manageable and allow the company to remain within its guidance range for EPS. In 2025, AstraZeneca expects core EPS to increase by a low double-digit percentage. Backed by its new products and pipeline drugs, AstraZeneca believes it can post industry-leading top-line growth in the 2025-2030 period. AstraZeneca expects to generate$80 billion in total revenues by 2030, a significant increase from the $54 billion it generated in 2024. By the said time frame, AstraZeneca plans to launch 20 new medicines, with nine new medicines already launched/approved. It believes that many of these new medicines will have the potential to generate more than $5 billion in peak-year revenues. The company is also on track to achieve a mid-30s percentage core operating margin by 2026 Considering AZN's growth prospects, investors may take advantage of the recent dip and consider buying this Zacks Rank #2 (Buy) stock, more so as it is trading below its five-year mean. Consistently rising estimates also indicate analysts' optimistic outlook for growth. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-04-2025
- Business
- Yahoo
Merck Q1 Earnings Coming Up: Should You Buy the Stock Now?
Merck MRK will report its first-quarter 2024 earnings on April 24, before market open. The Zacks Consensus Estimate for first-quarter sales and earnings is pegged at $15.48 billion and $2.16 per share, respectively. Earnings estimates for Merck for 2025 have declined from $9.01 to $8.96 per share over the past 30 days. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.) Image Source: Zacks Investment Research The healthcare bellwether's performance has been solid, with the company exceeding earnings expectations in each of the trailing four quarters. It delivered a four-quarter earnings surprise of 4.68%, on average. In the last reported quarter, the company delivered an earnings surprise of 1.78%, as seen in the chart below. Image Source: Zacks Investment Research Merck has an Earnings ESP of -2.04% and a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1, #2 (Buy) or #3 have a good chance of delivering an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Merck's top-line growth in the first quarter is likely to have been driven by cancer drug Keytruda, as in several previous quarters, aided by additional indications and patient demand. In oncology drugs, Keytruda sales are likely to have been driven by rapid uptake across earlier-stage indications globally, particularly early-stage non-small cell lung cancer. Continued strong momentum in metastatic indications is also likely to have boosted sales growth. The Zacks Consensus Estimate for Keytruda's sales is $7.55 billion, while our estimate is $7.82 billion. In the fourth quarter, U.S. sales of Keytruda benefited from approximately $200 million of wholesale inventory buy-in, which is expected to have reversed in the first quarter of 2025. Higher alliance revenues from Lynparza, driven by increased demand, may have boosted oncology sales. Please note that Merck markets Lynparza in partnership with AstraZeneca AZN. Merck has a profit-sharing deal with AstraZeneca to co-market Lynparza and Koselugo. AstraZeneca and Merck's Lynparza is approved for four cancer types, ovarian, breast, prostate and pancreatic. Lynparza is also being evaluated in combination with Keytruda in late-stage studies for lung cancer indications. Alliance revenues from Lenvima may have also boosted oncology sales. Sales of new drug Welireg are likely to have benefited from the increased uptake for the additional indication of previously treated advanced renal cell carcinoma in the United States. With regard to the HPV vaccine, Gardasil, ex-U.S. sales are expected to have been hurt by lower demand in China due to unfavorable economic conditions. Sales are likely to have increased in the United States due to higher pricing and demand. The Zacks Consensus Estimate for Gardasil is $1.33 billion, while our estimate is $1.28 billion. In the hospital specialty portfolio, generic competition in certain ex-U.S. markets, mainly Europe and the Asia Pacific region, is likely to have hurt sales of neuromuscular blockade medicine — Bridion injection. However, higher demand and pricing are expected to have benefited U.S. sales. The Zacks Consensus Estimate for Bridion is $422.7 million, while our estimate is $410.0 million. Lower demand and pricing in the United States and generic competition in certain international markets, mainly Europe and Asia Pacific, are likely to have hurt sales of the diabetes franchise (Januvia/Janumet). New pulmonary arterial hypertension (PAH) drug Winrevair is likely to have contributed to sales growth with most sales coming from the U.S. market as the company is steadily adding new patients. Another new vaccine, Capvaxive, is also off to an encouraging start in the United States. Investors will be keen to know the sales numbers of Capvaxive, which was approved in the European Union toward the end of March. The Zacks Consensus Estimate for Merck's Pharmaceutical unit is $13.64 billion, while our estimate is $13.82 billion. On the fourth-quarter conference call, the company had guided that Medicare Part D redesign is expected to hurt sales of Winrevair and oncology products, including Welireg, Lynparza and Lenvima in 2025. An update is expected on the first-quarter conference call. In the Animal Health franchise, growth in both companion animal and livestock products driven by higher demand and pricing is likely to have contributed to sales. The Zacks Consensus Estimate for the Animal Health unit is $1.61 billion, while our estimate is $1.58 billion. Nonetheless, a single quarter's results are not important for long-term investors. Let's delve deeper to understand whether to buy, sell or hold Merck stock. Merck's stock has declined 21.1% so far this year compared with a decrease of 2.4% for the industry. The stock has also underperformed the sector and the S&P 500 Index, as seen in the chart below. Image Source: Zacks Investment Research From a valuation standpoint, Merck appears attractive relative to the industry. Going by the price/earnings ratio, the company's shares currently trade at 8.44 forward earnings, lower than 15.07 for the industry as well as its 5-year mean of 13.10. Merck's stock is also cheaper than most other large drugmakers like AbbVie, AstraZeneca, Novo Nordisk and Eli Lilly (LLY). Image Source: Zacks Investment Research Merck boasts more than six blockbuster drugs in its portfolio, with the blockbuster PD-L1 inhibitor Keytruda being the key top-line driver. Merck's animal health and vaccine products are core growth drivers. It has a strong cancer pipeline, including Keytruda. Merck made meaningful regulatory and clinical progress in 2024 across areas like oncology (mainly Keytruda), vaccines and infectious diseases while executing strategic business moves like the acquisitions of Eyebiotech Limited and Harpoon Therapeutics. However, Merck is heavily reliant on Keytruda. Though Keytruda may be Merck's biggest strength and a solid reason to own the stock, it can also be argued that the company is excessively dependent on the drug and should look for ways to diversify its product lineup. There are rising concerns about the firm's ability to grow its non-oncology business ahead of the upcoming loss of exclusivity of Keytruda in 2028. Also, competitive pressure might increase for Keytruda in the near future. In 2024, Summit Therapeutics SMMT reported positive data from a phase III study (conducted in China by partner Akeso) in patients with locally advanced or metastatic NSCLC, in which its lead pipeline candidate, ivonescimab, a dual PD-1 and VEGF inhibitor, outperformed Keytruda. Summit believes iivonescimab has the potential to replace Keytruda as the next standard of care across multiple NSCLC settings. The company's second-largest product, Gardasil, is also seeing grim sales in China. Merck is also seeing weakness in the diabetes franchise and the generic erosion of some drugs. Merck has one of the world's best-selling drugs in its portfolio, generating billions of dollars in revenues. Though Keytruda will lose patent exclusivity in 2028, its sales are expected to remain strong until then. However, the company's problems are too many at present, including persistent challenges for Gardasil in China, potential competition for Keytruda and a bearish outlook for 2025. All these factors have raised doubts about Merck's ability to navigate the Keytruda loss of exclusivity period successfully. No matter how the first-quarter results play out, we suggest that investors with a long-term horizon should stay invested as Merck has strong fundamentals. However, short-term investors should consider selling the stock as the company may take some time to show strong earnings growth. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report Summit Therapeutics PLC (SMMT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
BBC News
10-02-2025
- Health
- BBC News
Six new drugs approved for NHS use in Scotland
Six new drugs, including a treatment for patients with advanced breast cancer, have been approved for use by the NHS in Scottish Medicines Consortium (SMC) has given the green light to three new cancer treatments as well as a drug to treat a rare type of epilepsy. Medicine that can help prevent HIV infections has also means the treatments can prescribed by NHS doctors across the a drug which has been shown to slow the progression of Alzheimer's is among those not approved. The SMC, the body which approves drugs for use in the health service, said there was "uncertainty" around the "modest clinical benefit" of the drug UK Medicines and Healthcare products Regulatory Agency (MHRA) has deemed the medication as efficient at slowing Alzheimer's drug is the first Alzheimer's treatment of its kind to be licensed for use in Great Britain but it has not been rolled out in England or Wales either due to the at Alzheimer Scotland said they were "disappointed" by the decision, which chief executive Henry Simmons said was "based on the medicine's cost in relation to the evidence of its clinical benefit".He said: "We remain optimistic that these initial hurdles will be overcome and, after decades of waiting, that new treatments will be approved for NHS use soon." Olaparib - which is also known under the brand name Lynparza - was approved for prescription to adults with breast cancer linked to the BRCA1 gene, or those with mutated HER2-negative advanced breast executive of Breast Cancer Now, Claire Rowney, said: "It's brilliant this targeted treatment has been made available on the NHS in Scotland."Crucially, it offers people living with incurable secondary breast cancer with an altered BRCA gene an additional drug option to help stop their cancer from progressing for longer, so they can continue doing the things that matter most to them."In addition to olaparib, the SMC approved cemiplimab for treating women with recurrent or metastatic cervical cancer, where the cancer has progressed on or after also backed the use of durvalumab as a treatment together with chemotherapy for those patients with newly diagnosed extensive-stage small cell lung cancer. Meanwhile, fenfluramine was approved for use to help treat a serious, rare type of epilepsy called Lennox-Gastaut syndrome, with another drug, cabotegravir approved to help prevent sexually transmitted HIV infections in adults and adolescents who are at high risk of being the SMC backed the use of netarsudil/latanoprost for patients suffering from high pressure in the eye or the eye condition chairman Dr Scott Muir said: "The committee was pleased to be able to accept six new medicines for use by NHS Scotland."Cabotegravir, when used together with safer sex practices may help to reduce the spread of HIV, which is an ongoing priority for the Scottish government."Cemiplimab offers a second line treatment option for patients with advanced cervical cancer, where there are few others."
