AstraZeneca (AZN.L) exceeded expectations for second-quarter revenue and profit on Tuesday, notably driven by strong sales of its cancer, heart, and kidney disease drugs and high demand in the US. The company continued its growth with a $50 billion investment in the US market, despite tariff threats from Washington.
This performance is a significant boost for AstraZeneca, the UK’s largest publicly traded company, while the pharmaceutical sector faces potential US tariffs on drug imports and President Trump’s directives to lower drug prices.
AstraZeneca shares rose by as much as 3 percent to 111 pounds, reaching their highest level since April.US Market Plays a Critical Role
AstraZeneca generated more than 40 percent of its revenue from the US in 2024. Even before Trump took office, the company prioritized the US market, establishing a strong presence in the global $635 billion pharmaceutical market. Last week, the EU-US trade agreement imposed a 15% tariff on European pharmaceuticals.
AstraZeneca has set a target of $80 billion in annual revenue by 2030, and has defined a strategy against generic drug competition through the launch of new drugs and expansion in the US.
The company increased its interim dividend by 3 percent, maintaining its 2025 forecast.Cancer Drugs Take Center Stage
Oncology drugs, which account for almost half of AstraZeneca’s revenue, increased by 18 percent in the second quarter, reaching $6.31 billion when exchange rates were kept constant. Drugs such as Tagrisso, Lynparza, Calquence, Truqap, and Imfinzi had sales exceeding expectations. The company’s total revenue increased by 11 percent to $14.46 billion, continuing double-digit growth in the US.
Challenges and Future Prospects
AstraZeneca is facing challenges such as some cancer drug penalties in China and the Tagrisso patent battle. Furthermore, they have postponed the release of clinical trial data for a major lung cancer treatment until 2026.
The company’s CEO, Pascal Soriot, said, “The strong momentum in revenue growth continued in the first half of the year, and the results we achieved from our broad drug pipeline were excellent.”
