Pharmaceutical drug giants AstraZeneca and GSK both saw cancer drug sales rise in their latest quarter.
AstraZeneca saw an uptick in revenue in its first quarter amid higher takings from drugs for cancer and rare diseases.
The group, which is the second largest company on the FTSE 100, reported first-quarter total revenue of $15.3billion (£11.3bn), up 8 per cent at constant exchange rates.
Cancer treatment sales accounted for 45 per cent of overall revenues during the latest quarter.
Meanwhile, GSK reported a 5 per cent increase in sales to £7.6billion, almost half of which came from speciality medicines, including cancer drugs.
‘Against an uncertain economic and geopolitical backdrop, big pharma is reminding the market why its expertise can yield big bucks in any kind of market environment,’ said Dan Coatsworth, head of markets at AJ Bell.
AstraZeneca’s core operating profit increased by 12 per cent to $4.25billion in the first quarter, and maintained its guidance.
It expects full-year total revenue to rise by a mid-to-high single-digit percentage at constant exchange rates, with core earnings per share forecast to grow by a low double-digit percentage.
The business is on a mission to generate $80billion in annual sales by 2030.
In demand: AstraZeneca saw an upturn in revenue in its first quarter amid higher takings from drugs for cancer and rare diseases
Chief executive Pascal Soriot said the business enjoyed ‘strong growth’ in the quarter which demonstrated its ‘consistent commercial execution’.
The firm’s expansion has been propelled by a rebuilding of its pipeline, particularly developing innovative cancer medicines, and boosting its presence in China and the US. It maintained its annual guidance on Wednesday.
AstraZeneca shares fell 0.94 per cent or 130.00p to 13,770.00p on Wednesday morning, having risen nearly 30 per cent in the past year.
GSK also reiterated its annual guidance after delivering a solid first quarter, in which core operating profit rose 10 per cent at constant exchange rates to £2.65billion. The core operating margin expanded to 34.7 per cent.
The group also reaffirmed its 2031 sales outlook of more than £40billion.
Turnover at GSK’s speciality medicines division jumped 14 per cent to £3.2billion, with cancer drugs the standout, climbing 28 per cent to £500million.
HIV drug sales grew 10 per cent to £1.8billion, while respiratory and immunology sales rose 16 per cent to £900million.
General Medicines sales slipped 6 per cent to £2.3billion.
A quarterly dividend of 17p per share has been declared, with 70p expected for the full year.
GSK shares fell 2.07 per cent or 42.00p to 1,986.00p on Wednesday morning, having risen nearly 40 per cent in the past year.
GSK chief executive Luke Miels told reporters that the business was a ‘heavy investor’ in the UK and remained committed to the country.
His remarks come after major pharmaceutical rivals have pulled investment in the UK in recent months and his predecessor Dame Emma Walmsley named the US at the best place for drug companies to invest.
‘We have a long term commitment to the UK,’ Miel said, but said there was no update on any new investment in the company to announce.
US-based Merck and London-listed AstraZeneca have scrapped or paused investments in the UK as bosses reckon Britain risks falling behind in the development of new drugs.
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