DRUGMAKER AstraZeneca lifted its annual sales and profit forecast for the second time in less than four months on Tuesday (Nov 12), helped by resilient demand for its cancer and rare diseases medicines, after third-quarter results beat estimates.
The London-listed company now expects 2024 revenue and core earnings per share to grow by a high-teens percentage, from a previous forecast of a mid-teens percentage at constant currency rates for both revenue and EPS.
AstraZeneca said on Tuesday it would invest US$3.5 billion of capital in the US focused on expanding its research and manufacturing footprint by the end of 2026. Some US$2 billion of that investment, announced for the first time on Tuesday, will expand manufacturing facilities in Maryland, Texas and in California, the company said.
AstraZeneca’s shares have fallen about 17 per cent in the past three months, reflecting market unease with the company’s business in China amid multiple investigations by national authorities. Its shares are down nearly 6 per cent this year, underperforming a near 9 per cent rise in the wider European health care sector.
AstraZeneca shares were up about 2 per cent in early trade, making them the top gainer on the FTSE 100.
Last week, the company said its China president Leon Wang had been detained by Chinese authorities and it did not know why.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
“We take the matters in China very seriously,” CEO Pascal Soriot said in a statement.
AstraZeneca said last week its chief financial officer Aradhana Sarin had briefed sell-side analysts on the subject on Nov6 to quell concerns about a fraud probe expanding following a report by financial media company Yicai a day earlier that led its shares to plunge more than 8 per cent.
The company has invested heavily in China, the world’s second-largest pharmaceuticals market after the US, with the local business contributing 13 per cent of group revenue last year.
AstraZeneca reiterated on Tuesday that it has not received notification from Chinese authorities that the company itself is under investigation but if requested, will cooperate with the Chinese authorities.
The drugmaker reported core earnings per share (EPS) of US$2.08 on total revenue of US$13.57 billion for the quarter ended Sep 30, above analyst expectations of US$2.04 per share on revenue of US$13.1 billion, according to a company-compiled poll.
Revenue in China in third quarter came in at US$1.7 billion, up from US$1.5 billion in the same quarter last year. REUTERS
