Strong demand for cancer drugs helps boost Astrazeneca PLC Sponsored ADR(AZN.US) performance above expectations, increasing annual profit growth rate.

The British pharmaceutical giant Astrazeneca PLC Sponsored ADR (AZN.US) has raised its annual forecast in the latest financial report, mainly due to strong demand for its blockbuster cancer drugs, and plans to invest approximately $3.5 billion in its US market business by the end of 2026. The company's financial report released on Tuesday showed that the expected earnings per share for 2024, excluding some special projects, have been increased from around 15% growth rate previously forecasted by Astrazeneca PLC Sponsored ADR to around 18% growth rate. In terms of performance for the third quarter ending in September, Astrazeneca PLC Sponsored ADR's top-selling cancer drug Tagrisso was a major driver of higher-than-expected overall sales for Astrazeneca PLC Sponsored ADR, while the sales contribution from the new drug Enhertu was also higher than market expectations. Astrazeneca PLC Sponsored ADR's overall revenue for Q3 reached $13.565 billion, a 21% increase year-on-year; Q3 core earnings per share were $2.08, a 27% increase year-on-year. The financial data showed that the cancer drug Tagrisso brought in revenue of up to $1.674 billion for Astrazeneca PLC Sponsored ADR in the third quarter, a 17% increase year-on-year. The anti-cancer drug Tagrisso (generic name: osimertinib), which is driving Astrazeneca PLC Sponsored ADR's performance growth, is a targeted therapy drug for non-small cell lung cancer (NSCLC) patients with EGFR (epidermal growth factor receptor) mutations. Tagrisso has been approved for first-line treatment of advanced or metastatic NSCLC patients with EGFR mutations. Additionally, it is also indicated for patients with the T790M mutation who have developed resistance after receiving other EGFR-TKI treatments. The British pharmaceutical giant also stated that it will invest approximately $3.5 billion in research and manufacturing for the US market by the end of 2026. This includes $2 billion in new investments that Astrazeneca PLC Sponsored ADR is seeking to further expand its business in the US market, where its sales are approximately twice the size of the European market and the largest driver of overall sales growth in all regions. This large-scale investment includes the previously announced research facilities in Cambridge, Massachusetts, and biologics manufacturing facilities in Maryland, cell therapy manufacturing capabilities on the East and West coasts, and specialized manufacturing facilities in Texas. Astrazeneca PLC Sponsored ADR has been expanding its manufacturing scale globally in multiple regions, but the plans for the US are larger in scope than the $1.2 billion investment in Singapore announced earlier this year. It is also significantly larger than the approximately 650 million ($833 million) investment planned in the UK. The pharmaceutical giant's capital expenditures are expected to total around $1.4 billion in 2023, with a potential significant increase in 2024. Despite a 10% growth in sales of Astrazeneca PLC Sponsored ADR's anti-cancer drugs in the third quarter, exceeding market expectations, analysts expressed concerns about the development of an experimental anti-cancer drug called Dato-DXd. Astrazeneca PLC Sponsored ADR and partner Daiichi Sankyo Co Ltd withdrew a previously submitted application to the FDA and re-submitted a new application targeting a broader patient population. Analyst John Murphy from Bloomberg Intelligence stated that this move "could further lower long-term sales expectations for this potential blockbuster drug." Analyst Peter Welford from Jefferies Financial Group Inc. mentioned in a report that the withdrawal and resubmission of the FDA application were a "setback, but not entirely unexpected." There are reports that Chinese authorities are investigating the illegal import of cancer drugs through Hong Kong to China, causing a significant blow to the British pharmaceutical company's stock. Media reports have stated that the company's president for China has been detained, and several current and former executives are under government investigation. Astrazeneca PLC Sponsored ADR CEO Pascal Soriot stated in a statement that the company "highly values" its affairs in the Chinese market, and added that they will fully cooperate with Beijing officials if required. Astrazeneca PLC Sponsored ADR also mentioned that they have not received any notification regarding an investigation into the company itself. According to the financial data, sales in the Chinese market for Astrazeneca PLC Sponsored ADR were approximately $1.7 billion in the third quarter, a 15% increase year-on-year at fixed exchange rates; sales in the European market grew by 22% year-on-year, while other emerging markets (excluding China) increased by 31%, and sales from the US market increased by approximately 23%. The disclosure about China overshadowed the latest results of the company's highly anticipated obesity drug asset. Astrazeneca PLC Sponsored ADR stated that three new potential anti-obesity drugs have been proven to be safe and are currently undergoing mid-stage clinical trials. These drugs include an innovative experimental weight loss drug. This company is headquartered in the UK.The pharmaceutical giant is striving to double its sales to reach approximately $80 billion and aims to launch 20 new drugs before 2030. Anti-cancer drugs will be the key factor in achieving this ambitious sales target.After the latest financial report was released, the stock price of Astrazeneca PLC Sponsored ADR rose 3% in early trading in London before narrowing. As of Monday's close, the stock has fallen 5.8% on the London Stock Exchange since the beginning of the year. In the US stock market, the price of Astrazeneca PLC Sponsored ADR ADR has fallen by about 2% so far this year, significantly underperforming the S&P 500 index, which has risen by about 25%.