U.K. – British pharmaceutical giant AstraZeneca has raised its full-year sales forecast, citing robust demand for its oncology and rare-disease medications.
As part of a significant strategic shift, the company also unveiled plans to invest US $3.5 billion into its U.S. business by 2026.
The investment aims to bolster AstraZeneca’s research and manufacturing capabilities in the U.S., with US $2 billion allocated to create over 1,000 skilled jobs, according to the company.
“Our company has continued on its strong growth trajectory in the first nine months of 2024,” said AstraZeneca CEO Pascal Soriot.
The updated sales outlook, he added, reflects rising demand across its “oncology, biopharmaceuticals, and rare disease” portfolios.
AstraZeneca now anticipates revenue and core earnings per share to grow at a high-teens percentage for 2024, up from the previously expected mid-teens.
U.S. expansion: New R&D and manufacturing facilities
AstraZeneca’s ambitious US $3.5 billion investment will fund new and expanded facilities across the United States.
Plans include a research and development center in Cambridge, Massachusetts, a next-generation biologics manufacturing site in Maryland, specialized manufacturing in Texas, and expanded cell therapy manufacturing capacities on both U.S. coasts.
By strengthening its presence in the U.S., AstraZeneca is positioning itself to support the development of advanced treatments and to contribute significantly to the U.S. economy through job creation.
The company stated that this expansion will enhance its capacity to bring innovative medicines to the market.
Impressive Q3 results exceed market expectations
AstraZeneca’s third-quarter financials exceeded market expectations, reporting US $13.57 billion in revenue, surpassing the consensus forecast of US $13.07 billion.
Core earnings per share came in at US $2.08, slightly above analysts’ predictions of US $2.06.
The company’s U.S. revenue rose by 23% year-over-year, reaching US $6 billion for the quarter, while revenue in China increased 15%, totaling US $1.7 billion.
Navigating challenges in China
Despite recent scrutiny in China, where several senior AstraZeneca executives were implicated in an insurance fraud case, the company has confirmed that it has “not received any notification that it is itself under investigation.”
CEO Pascal Soriot emphasized, “We take the matters in China very seriously. If requested, we will fully cooperate with the authorities.”
China is AstraZeneca’s second-largest market, accounting for 13% of its total revenue in 2023.
The company has invested heavily in the region, but concerns arose after local media reported that AstraZeneca’s China president, Leon Wang, had been detained by authorities last week.
AstraZeneca’s stock fell sharply following these reports, yet Soriot reassured stakeholders that AstraZeneca would respond fully to any regulatory inquiries.
Promising advances in cancer treatment
In other developments, AstraZeneca and its partner Daiichi Sankyo submitted a new biologics license application in the U.S. for their experimental cancer drug, datopotamab deruxtecan.
The application seeks accelerated approval for treating certain non-small cell lung cancer patients who have previously received other therapies.
Analysts see this submission as a positive step, potentially increasing the chances of approval for this promising precision oncology treatment.
