AstraZeneca lifts steering once more as oncology drug gross sales soar to $5.6bn

AstraZeneca has upgraded its annual guidance for the second time this year after sales of its cancer drugs soared in the third quarter.

The pharmaceutical giant expects overall sales and core earnings per share to rise by a high-teens percentage at constant currency rates in 2024, having previously guided for low-teens percentage growth across both categories.

Turnover increased by 21 per cent to $13.6billion in the three months to 30 September.

Outlook: AstraZeneca has upgraded its annual guidance after a solid third-quarter result

Sales of oncology drugs jumped by 22 per cent to $5.6billion, supported by double-digit percentage growth in lung cancer treatments Tagrisso and Imfinzi and the non-Hodgkin’s lymphoma drug Calquence.

Trading further benefited from sales of type 2 diabetes medicine Farxiga, its most popular-selling drug, soaring by 27 per cent to $1.9billion, and rare disease drug Ultomiris rising by 35 per cent to more than $1billion.

As a result, the FTSE 100 group’s core earnings and operating profits each grew by 27 per cent to $2.08 per share and $4.3billion, respectively.

Pascal Soriot, chief executive of AstraZeneca, said: ‘We are highly encouraged by the broad-based underlying momentum we are seeing across our company in 2024, and growth looks set to continue through 2025, providing a solid foundation to deliver on our 2030 ambition.’

AstraZeneca also announced plans to spend $3.5billion by 2026 bolstering its research and manufacturing capabilities in the US.

Among other things, the firm intends to build a new research and development centre in Massachusetts and a manufacturing facility for biologics in Maryland.

Soriot said the investment reflects the ‘attractiveness of the business environment together with the quality of talent and innovation capabilities here in the United States.’

AstraZeneca already employs 17,800 people across the US but expects to add over a thousand more high-skilled jobs from the expansion.

AstraZeneca shares were up just 0.45 per cent at 10,030p on Tuesday morning and have fallen by around 16 per cent over the past six months.

Sheena Berry, healthcare analyst at Quilter Cheviot, said the Chinese authorities’ probe into AstraZeneca had rocked the company’s share price.

‘Clearly, the outcome is unknown, and that will concern investors,’ she remarked, adding that ‘any swift resolution will be greatly welcomed.’

AstraZeneca confirmed last week that its Chinese head, Leon Wang, had been detained, while two other executives and two ex-bosses were under investigation.

Around 13 per cent of AstraZeneca’s sales last year came from China, where the group signed a licence agreement worth up to $2billion in October to develop a drug to combat high cholesterol levels.

‘To the best of the company’s knowledge, the investigations include allegations of medical insurance fraud, illegal drug importation and personal information breaches,’ said AstraZeneca.