Drugmaker AstraZeneca lifted its annual sales and profit forecast for the second time in less than four months on Tuesday, 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 $3.5 billion of capital in the United States focused on expanding its research and manufacturing footprint by the end of 2026.
Some $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% 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% this year, underperforming a near 9% rise in the wider European health care sector.
AstraZeneca shares were up about 2% 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.
“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 Nov.6 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%.
Pharma giant AstraZeneca says China chief under investigation
The company has invested heavily in China, the world’s second-largest pharmaceuticals market after the United States, with the local business contributing 13% 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 $2.08 on total revenue of $13.57 billion for the quarter ended Sept. 30, above analyst expectations of $2.04 per share on revenue of $13.1 billion, according to a company-compiled poll.
Revenue in China in third quarter came in at $1.7 billion, up from $1.5 billion in the same quarter last year.
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