AstraZeneca profit jumps 23% on cancer drugs as it unveils major savings plan

AstraZeneca's net profit jumped 23% in the third quarter on booming sales of its cancer drugs, as the British drugmaker unveiled a programme to save $1.5 billion (€1.34bn) a year to invest back into developing new medicines. AstraZeneca, Britain's biggest pharmaceutical company, said on Friday that its profit after tax rose 23% to $3.12 billion (€2.79bn) for the July to September period, driven largely by its cancer treatments. That marks a sharp pick-up from the rise of just over 2% in the previous quarter. The firm also launched a plan to generate $1.5 billion (€1.34bn) in annual savings, which it intends to reinvest mainly in the drugs it has in development. Revenue grew 7% to $16.2 billion (€14.5bn). Oncology, its biggest business, accounted for 48% of the total, with sales up 17% to $7.8 billion (€6.99bn), led by lung cancer drug Tagrisso and immunotherapy Imfinzi. Core earnings per share, which exclude items such as restructuring costs and the amortisation of acquired drugs, rose 17% to $2.79. The savings drive, called Reshaping for Sustainable Growth, will cost up to $2 billion (€1.79bn) in one-off restructuring charges and is due to be largely complete by the end of 2029. AstraZeneca said the savings would be reinvested in the company, principally in its pipeline of new drugs, as it plans to "redeploy resources" across its existing business to back more than 180 projects in development. Such restructuring could mean job cuts, though none have been announced. "With multiple potential blockbuster assets in late-stage development and transformative technologies scaling rapidly, we are on track to deliver our 2030 ambition," CEO Pascal Soriot said in a statement. Generics and China weigh The growth came despite pressure on older medicines. Sales of Farxiga, its treatment for diabetes, heart and kidney disease, fell 25% to $1.6 billion (€1.43bn) after cheaper generic versions hit the US market, while blood thinner Brilinta also lost patent protection. AstraZeneca is also facing volume-based procurement in China, a state bulk-buying scheme that forces drugmakers to cut prices in exchange for large orders. The company confirmed its outlook for 2026, expecting revenue to grow by a mid-to-high single-digit percentage and core earnings per share by a low double-digit percentage, excluding currency swings. It remains on track for its target of $80 billion (€71.7bn) in annual revenue by 2030, compared with almost $59 billion (€52.9bn) in 2025, and expects half of that to come from the US. The company has been leaning further into the American market, adding a direct share listing in New York in February, while also pledging to invest $15 billion (€13.4bn) in China by 2030. It has reported 12 positive results from late-stage trials so far this year, and is also developing a weight-loss treatment to compete with drugs such as Novo Nordisk's Wegovy and Eli Lilly's Mounjaro. AstraZeneca shares were up over 4.5% in early trading on Friday.