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Yahoo
a day ago
- Business
- Yahoo
AstraZeneca increasing focus on US market, as it is 'first to provide access to patients': CFO
AstraZeneca (AZN) is shifting its focus to the US, calling itself an "American company" on Tuesday as it ramps up manufacturing and proposes price cuts for the US market. CEO Pascal Soriot told reporters Tuesday that the company, which reported its best quarter to date on the same day, "We are a very American company. We are global, but we are certainly very much rooted and present in the US." Tuesday's comment comes as the UK-based and UK-listed company is reportedly considering moving its main stock market listing to New York. In addition, the company recently announced $50 billion in manufacturing commitments in the US — including a brand-new facility in Virginia — and stated its goal of having 50% of its revenue come from the US by 2030. AstraZeneca's top-selling drugs include cancer drug Tagrisso and diabetes drug Farxiga. CFO Aradhana Sarin told Yahoo Finance that the moves are independent of Trump's tariff threats of up to 200% on the pharmaceutical industry. "We have been thinking about our strategic manufacturing — this probably goes back 3 or 4 years," she said. "So, post-COVID, we made a strategic decision because we're such a global company that we needed to have segregated supply chains." "This new facility [in Virginia] that we announced was part of the plan anyway," she added. "But that's separate, it's nothing to do with tariffs. It's actually based on the demand that we see potentially for our new cardiovascular medicine." And there are other reasons why the market is more appealing — including how quickly products reach patients in the US versus other countries. "When new therapies come ... the US market is almost the first to provide access to patients. Physicians ... are really into looking at the data," Sarin said, explaining why the US market is more appealing to pharma than other markets. AstraZeneca is also focused on other strategies that appeal to the US government, including price cuts. It sent a proposal to the US government on price reductions for some of its drugs. The proposal is under review, Soriot said. Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, provider services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky @AnjKhem. Click here for in-depth analysis of the latest health industry news and events impacting stock prices 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
Business Insider
2 days ago
- Business
- Business Insider
AZN Earnings: Drugs Giant AstraZeneca (AZN) Zooms Higher on Cancer-Fighting Demand
Shares in pharmaceutical giant AstraZeneca (AZN) climbed over 3% today after it said cancer-fighting drugs had led to record quarterly sales. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Forecast Beaters The company reported that Q2 earnings per share beat forecasts, coming in at $2.17, up from $1.98 in the same period last year. Revenues for the period also beat forecasts, soaring to a record $14.46 billion from $12.94 billion last time. AstraZeneca said its 'broad and diverse pipeline' of drugs had helped with oncology sales doing particularly well, rising 18% to $6.3 billion. It was boosted by sales of its lung cancer drug Tagrisso and chemotherapy drug Enhertu, and continues to lead overall performance. European sales were up 12% to $3 billion, with Chinese demand up 5% to nearly $2 billion. U.S. revenue was up 13% to a record $6.32 billion. The pharmaceutical company is targeting 50% of its total revenue coming from the country by 2030, up from 44% in the second quarter. To help that aim, the group has already committed to investing $50 billion in the U.S. by 2030 including a new manufacturing center in Virginia. Tariff Uncertainty That move was partly in response to uncertainty about the impact of President Trump's tariffs on the pharmaceutical sector. AstraZeneca said that global trade uncertainty and pricing pressures still existed but it reiterated its full-year forecast. This should see total revenue increasing by a 'high single-digit percentage' and core earnings per share by a 'low double-digit' percentage. Chief executive Sir Pascal Soriot said: '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, with 12 positive key phase III trial readouts including for baxdrostat, gefurulimab, and Tagrisso in just the past few weeks.' The group is known as a strong income investing stock. It further cheered investors by hiking its Interim dividend by 3% to $1.03. Is AZN a Good Stock to Buy Now? On TipRanks, AZN has a Strong Buy consensus based on 4 Buy ratings. Its highest price target is $97. AZN stock's consensus price target is $97, implying a 36.04% upside.
Globe and Mail
3 days ago
- Business
- Globe and Mail
AZN Q2 Earnings Meet Estimates, Sales Beat as Key Drugs Outperform
AstraZeneca 's AZN second-quarter 2025 core earnings of $1.09 per American depositary share (ADS) came in line with the Zacks Consensus Estimate. Core earnings of $2.17 per share rose 10% year over year on a reported basis and 12% on a constant exchange rate (CER). Total revenues of $14.46 billion rose 12% on a reported basis and 11% at CER, driven by higher product sales and alliance revenues from partnered medicines. Revenues beat the Zacks Consensus Estimate of $14.03 billion. All growth rates mentioned below are on a year-over-year basis and at CER. AZN's Product Sales & Alliance Revenues Among AstraZeneca's various therapeutic areas, Oncology revenues were up 18%, while Cardiovascular, Renal and Metabolism ('CVRM') product sales rose 3%. The Respiratory & Immunology (R&I) segment's sales rose 12%. While Rare disease revenues rose 7%, sales of Vaccines & Immune (V&I) Therapies rose 54%. Sales of other medicines were down 9%. Product sales rose 10% to $13.8 billion, as strong underlying demand trends for its products were partially offset by new manufacturer discounts under Medicare Part D redesign in the United States. Alliance revenues include royalties and profit share from partnered medicines, such as Enhertu and Tezspire, in geographies where its partner books product sales. Alliance revenues rose 35% to $654 million, driven by continued revenue growth from partnered medicines. Alliance revenues included $436 million from Daiichi Sankyo for Enhertu and $155 million of AstraZeneca's share of gross profits in the United States from partner Amgen AMGN for Tezspire. Alliance revenues also included $10 million from partner Daiichi Sankyo for Datroway and $27 million for Beyfortus. AZN records a 50% share of gross profits from Beyfortus' sales in major ex-U.S. markets and 25% of brand revenues from the rest of the world markets received from partner Sanofi SNY. The company also records Beyfortus product sales from products supplied to partner Sanofi under the V&I Therapies segment. AstraZeneca's Key Oncology Drugs Beat Estimates Here, we have discussed the total revenues of its drugs by including Alliance revenues and Collaboration revenues within each revenue figure. In Oncology, Tagrisso recorded revenues of $1.81 billion, up 12% year over year, on strong demand for all indications and in all regions, which more than offset the impact of Medicare Part D redesign and pricing pressure in some European markets. Tagrisso sales beat the Zacks Consensus Estimate as well as our model estimate of $1.75 billion. Lynparza's total revenues rose 11% to $838 million, driven by increased market share/demand growth for all approved indications. The drug's sales beat the Zacks Consensus Estimate of $810 million and our estimate of $788.7 million. AstraZeneca markets Lynparza in partnership with Merck MRK. During the quarter, the company did not record any milestone payment from partner Merck related to the drug. Imfinzi generated sales of $1.46 billion in the quarter, up 26%, driven by strong growth from launch in bladder and lung cancer indications, partially offset by mandatory price reductions in Japan. Imfinzi sales beat the Zacks Consensus Estimate of $1.37 billion and our estimate of $1.3 billion. Sales of Calquence rose 10% to $872 million in the quarter. New breast cancer drug Truqap recorded $170 million in revenues in the second quarter of 2025 compared with $132 million in the previous quarter. Newly approved drug Datroway, for which it has a partnership with Daiichi Sankyo, recorded revenues of $11 million in the quarter compared with $4 million in the first quarter, driven by encouraging initial launch uptake in the United States. The FDA approved the expanded use of Datroway for a second indication — non-small cell lung cancer in June. AZN's CVRM Segment Performance In CVRM, Farxiga recorded product sales of $2.15 billion, up 10%, driven by continued demand growth across chronic kidney disease and heart failure. Farxiga sales beat the Zacks Consensus Estimate of $2.05 billion and our model estimate of $2.06 billion. Brilinta/Brilique sales totaled $215 million in the reported quarter, down 38%, due to the generic launch in Europe and the United States in the second quarter. New drug Wainua recorded $44 million in product sales during the quarter compared with $39 million in the previous quarter, driven by strong launch momentum in the United States and initial launch in ex-U.S. markets. AZN's R&I Segment Performance In R&I, Symbicort sales declined 1% to $715 million due to generic erosion in Europe and competition from triple therapy on the ICS/LABA class of medicines like Symbicort in China. The drug's sales missed the Zacks Consensus Estimate and our model estimate of $726 million and $732.9 million, respectively. Fasenra recorded sales of $502 million in the quarter, up 18% year over year, driven by strong demand growth and market share gains. The recent launch for the EGPA indication also benefited sales in some countries. The drug's sales beat the Zacks Consensus Estimate as well as our model estimate of$467 million. Breztri recorded sales of $283 million, up 20% year over year. Pulmicort sales declined 32% to $106 million. Tezspire recorded total revenues of $261.0 million, up 65% year over year, driven by demand growth and launch uptake in multiple markets. Amgen records product sales in the United States, and AstraZeneca records its share of U.S. gross profits as Alliance revenues. AstraZeneca books product sales in markets outside the United States. New product Airsupra generated $42 million in product sales in the second quarter, compared with $28 million in the previous quarter. New lupus drug, Saphnelo, recorded sales of $167 million, up 48% year over year. AZN's Rare Disease, V&I and Other Segment In the Rare Disease portfolio, Soliris sales fell 22% to $530 million due to conversion to Ultomiris and biosimilar erosion in Europe. Ultomiris revenues amounted to $1.18 billion, up 23%, driven by patient demand, growth in neurology indications, geographic expansions in new markets and continued conversion from Soliris. The impact of Medicare Part D redesign was minimal in the second quarter. In Other Medicines, sales of Nexium declined 11% to $201 million. In V&I Therapies, AstraZeneca recorded $126 million in revenues from Beyfortus, which included alliance revenues mentioned earlier as well as sales of manufactured Beyfortus product to Sanofi. AZN Maintains 2025 Guidance AstraZeneca maintained its financial guidance for 2025. It expects total revenues to grow by a high single-digit percentage at CER. Core EPS is expected to increase by a low double-digit percentage. Our Take on AZN's Results AstraZeneca reported decent second-quarter results, as its earnings matched estimates and revenues beat the same. Sales of almost all key drugs, including Tagrisso, Lynparza, Imfinzi, Farxiga and Fasenra beat estimates. All these drugs have been driving AstraZeneca's top-line growth over the past several quarters, backed by increasing demand trends. Newer drugs like Wainua, Airsupra, Saphnelo, Datroway (partnered with Daiichi Sankyo) and Truqap also contributed to top-line growth in the second quarter. AstraZeneca also announced an increase in its interim dividend by 3% to $1.03 per share. Shares of the British drugmaker rose around 4% in pre-market trading on Tuesday in response to the strong top-line performance. Year to date, the stock has risen 11.1% compared with the industry 's 3.1% increase. AZN reaffirmed its 2025 guidance. 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 the Oncology and CVRM 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. 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 almost half of these 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 Earlier this month, AZN announced plans to invest $50 billion by 2030 to boost manufacturing and R&D in the United States to expand domestic production in response to ongoing tariff pressures under President Donald Trump. AZN's Zacks Rank Currently, AstraZeneca has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Higher. Faster. Sooner. Buy These Stocks Now A small number of stocks are primed for a breakout, and you have a chance to get in before they take off. At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We've combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month. You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days. Download the report free now >> 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 Sanofi (SNY): Free Stock Analysis Report AstraZeneca PLC (AZN): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report
Reuters
3 days ago
- 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.
The Independent
3 days ago
- Business
- The Independent
Cancer drug demand drives higher sales for AstraZeneca
AstraZeneca has announced a jump in sales in recent months after a surge in demand for cancer drugs, as the pharmaceutical giant prepares to plug 50 billion dollars (£37 billion) into its US expansion. The drug-maker reported total revenues of 28 billion US dollars (£21 billion) for the first half of 2025. This is 11% higher, at constant exchange rates, than the same period a year ago. AstraZeneca said the uplift was largely driven by its oncology medicines, with product sales surging by 16% year on year, thanks to growth in demand for drugs including Tagrisso and Imfinzi. Revenues from oncology products, which refer to the diagnosis and treatment of cancer, made up 43% of the company's total sales. The group's pre-tax profit soared by 27% to 6.5 billion US dollars (£4.9 billion) for the first half, compared with last year. AstraZeneca, which is based in the UK, last week pledged a mammoth investment into the US over the next five years, where it generates the highest proportion of sales. The money will fund a new multibillion dollar manufacturing facility in Virginia, to be the firm's largest single manufacturing investment in the world. The new factory will produce drug substances for its growing weight management and metabolic portfolio, including oral GLP-1 products. GLP-1 is the scientific term for weight-loss medication, which works by reducing food cravings. Oral medicines can be taken in tablet form, while other drugs are taken as injections. '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,' Pascal Soriot, AstraZeneca's chief executive, said. 'This landmark investment reflects not only America's importance but also our confidence in our innovative medicines to transform global health and power AstraZeneca's ambition to deliver 80 billion dollars revenue by 2030.'
