AstraZeneca increased its full-year sales and profit forecast for a second time in 2024, after the drug maker benefited from an impressive third quarter in the context of healthy demand for treatments in oncology and rare disease categories. Revenue and core earnings per share were above expectations at the London-based drug manufacturer, thereby increasing the growth prospect for 2024. AstraZeneca currently expects revenue as well as core EPS to grow in the high teens, above a prior guided mid-teens growth at constant currencies.
In addition, the pharmaceutical giant made known the revelation of significant new investments in the U.S. that would amount to $2 billion toward the expansion and enhancement of R&D and biologics manufacturing capabilities, which include cell therapy production. The same would have significantly increased its total investment in the U.S. to $3.5 billion by the end of 2026, as the company plans to upgrade manufacturing sites in Maryland, Texas, and California. It is expected to create 1,000 high-skilled jobs. According to Pascal Soriot, CEO such investments demonstrate the business environment strength in the United States and country leadership in innovation in healthcare.
AstraZeneca Boosts 2024 Forecasts Amid Strong Oncology
AstraZeneca’s oncology business showed notable growth, with revenues from cancer drugs like Enhertu and Tagrisso increasing by 21% in Q3. The sector of respiratory and immunology department also saw revenue increase by 24% both at constant exchange rates.
Despite the consoling fundamentals, AstraZeneca‘s shares dropped as low as 1.4% in early trading, which was hammered by investor concerns about the business of this drug maker in China. The chief of the firm in China, Leon Wang, was reportedly detained by the Chinese authorities, although the company claimed that it didn’t know why it happens. The country, in any case, remains a core market, representing 13% of total revenue in 2023.
While long-term problems about these issues are causing some analysts to sound alarm, others remain positive, especially in light of the biologics license application now filed for its lead candidate datopotamab deruxtecan, which will accelerate the drug’s approval in the US for certain types of cancer treatment.
