By Pushkala Aripaka and Maggie Fick
July 27 (Reuters) – AstraZeneca stood by its annual and long-term forecasts on Monday as the drugmaker sought to reassure investors after recent trial setbacks kept attention on its pipeline despite better than expected second-quarter profit.
Although strong demand for cancer and rare disease drugs continues to drive growth against a background of broader pricing pressures, investors are keen on signs that the pharmaceutical giant’s 2030 revenue target is not under threat after an unexpected trial failure this month.
AstraZeneca in 2024 set a target to reach $80 billion in annual revenue by 2030, something JPMorgan analysts said on Monday the firm would be able to achieve after second-quarter profit topped analysts’ predictions and sales were as expected.
AstraZeneca shares rose 1.5% by 0800 GMT, though are down about 7% this year, trailing rival GSK. However, from a wider lens the stock has more than quadrupled in price under long-time CEO Pascal Soriot’s successful 14-year tenure.
PHARMACEUTICAL DIVERSITY
AstraZeneca’s diversity in therapeutic areas and approved drugs and broad success in clinical trials sets it apart from its peers. However, results from two upcoming late-stage cancer studies will be a litmus test for Soriot after clinical trial setbacks on nerve drug Wainua and experimental breast cancer treatment camizestrant.
“We remain confident in the strength of our pipeline and have more than twenty high-value readouts due over the next 18 months,” he said in a statement.
AstraZeneca also detailed the outcome of a different, successful late-stage gastric cancer trial, while another study of its rare-disease drug ultomiris failed to meet the primary goal of a study in patients with a life-threatening complication from stem-cell transplants.
“Growth is clearly moderating, and investors will stay laser focused on the remaining big oncology trial readouts later this year,” eToro analyst Adam Vettese said.
2026 OUTLOOK MAINTAINED
AstraZeneca continues to expect 2026 core earnings per share to increase by a low double-digit percentage at constant currency rates, with total revenue rising at a rate in the mid-to-high-single digits. It reported sales and profit growth of about 8% and 11%, respectively, last year.
Core earnings for the June quarter jumped to $2.63 per share, helped by lower taxes, while total revenue rose 5% to $15.38 billion, compared to company-compiled consensus of $2.48 and $15.39 billion, respectively.
Oncology sales rose 15% supported by sales of blood cancer drug Calquence, while rare diseases revenue grew 8%, beating expectations according to JPMorgan.
The company also raised the sales potential of experimental respiratory drug tozorakimab to more than $5 billion compared to previous expectations of $3 billion.
(Reporting by Pushkala Aripaka in Bengaluru and Maggie Fick in London, Raechel Thankam Job and Sri Hari N S; Editing by Mrigank Dhaniwala, Kirsten Donovan)
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