By Pushkala Aripaka
(Reuters) -AstraZeneca delivered better-than-expected third quarter earnings and retained its full-year forecasts on Thursday, with strong sales of its blockbuster cancer and cardiovascular drugs.
The drugmaker is looking to new launches, including a blood pressure drug, to offset looming patent expiries for medicines such as diabetes and heart treatment Farxiga as it progresses towards its goal of $80 billion in annual revenues by 2030.
“The strong underlying momentum across our business through the first nine months of the year sets us up well to sustain growth through 2026 and has us on track to deliver our 2030 ambition,” Chief Executive Pascal Soriot said in a statement.
Shares in London’s most valuable listed company were up 1% at 0856 GMT in volatile early trade.
US DRUG PRICING DEAL IMPACT AWAITED
AstraZeneca is also betting on expansion and a drug pricing deal in the U.S., which accounts for more than 40% of total sales, for some relief from the effects of import tariffs.
The Anglo-Swedish drugmaker signed a deal last month to reduce prices for some of its prescription medicines in the U.S. after unveiling a $50 billion investment plan in July. It will also list on NYSE to gain access to a deeper capital pool.
It did not detail the potential financial impact on its business from the pricing agreement in Thursday’s results.
Global drugmakers have pledged billions of dollars to boost manufacturing in the U.S. in response to trade tensions.
OUTLOOK UNCHANGED AFTER RESULTS BEAT
Some analysts, including Barclays, had expected AstraZeneca to increase its full-year outlook, but the drugmaker maintained its forecast for high single-digit percentage revenue growth and a low double-digit percentage rise in core earnings.
AstraZeneca reported core earnings growth of 12% to $2.38 per share for the three months ended September 30, and 10% revenue growth to $15.19 billion at constant currency rates.
That was well ahead of expectations of $2.29 per share in earnings and sales of $14.79 billion in a company-provided poll.
Sales in the U.S. were $6.55 billion for the third quarter, up 9%, whereas revenues from China, AstraZeneca’s second-largest market, they rose 5% to $1.76 billion.
Investors have been scrutinising AstraZeneca’s performance in China after authorities launched a probe into its business there and arrested a top executive last year.
(Reporting by Pushkala Aripaka and Unnamalai L in Bengaluru, and Maggie Fick in London; Editing by Rashmi Aich, Josephine Mason and Alexander Smith)
