AstraZeneca Profit, Revenue Lifted by Cancer Drugs: CEO Interview

AstraZeneca Plc reported better-than-expected sales and rising profit for the second quarter, spurred by its stable of cancer medicines and growth in the US. Chief Executive Officer Pascal Soriot has turned the company into an oncology powerhouse, and increasing the company’s presence in the U.S.. The company pledged $50 billion by 2030 in both production and research and development. Soriot told Bloomberg Businessweek Daily the company wants to work with states that work quickly and understand the pharmaceutical giant’s vision.

AstraZeneca Plc reported better-than-expected sales and rising profit for the second quarter, spurred by its stable of cancer medicines and growth in the US.

Revenue climbed 12% to $14.5 billion, the UK drugmaker said Tuesday, beating estimates. Earnings per share excluding some items rose 10% to $2.17, as expected. The shares climbed 1.4% in London trading, pushing their gain for the year beyond 4%.

Under Chief Executive Officer Pascal Soriot’s watch, Astra has turned into an oncology powerhouse and is increasingly focused on the US.

The company is working to shore up its manufacturing presence there, pledging $50 billion by 2030 in both production and research and development as it seeks to show President Donald Trump’s administration it is serious about making medicines locally. Trump is set to impose tariffs on pharmaceuticals in an effort to increase US drug manufacturing.

Astra said sales in the country, which is its key market now, grew 13% in the quarter. The cancer-medicine portfolio delivered revenue of $6.3 billion, higher than expected, fueled by drugs including Tagrisso and Imfinzi. The older heart medicine Brilinta, which faces generic competition, disappointed.

Separately, Astra is pushing back the results of a key cancer study on the potential blockbuster medicine Datroway. The trial results, due in the coming months, will now be released in the first half of next year as the company awaits more data on how patients’ disease is progressing.

The study is key to both the drug’s fortunes and the company’s stock performance. Despite recent positive study results for other medicines including a hypertension medicine and a treatment for the autoimmune condition known as myasthenia gravis, Astra shares have underperformed those of other drugmakers like Swiss rival Novartis AG this year.

The company on Tuesday reiterated its full-year outlook for revenue and core earnings. The guidance is likely underpinned regardless of tariffs, Morgan Stanley’s Sarita Kapila said in a note. The results should help to reassure investors, she said.

Besides cancer, Astra is working to develop the pipeline for its medicines to treat cardiovascular conditions as well as weight loss.

While Astra was not one of the early entrants into the obesity space, it has been investing in building out its own offerings that it believes might be part of the next generation of weight-loss medicines.

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