AstraZeneca, the UK's largest pharmaceutical group, reported a 23% increase in net profit for the third quarter, reaching $3.12bn (€2.79bn), propelled by robust demand for its oncology portfolio. The company also unveiled a cost-saving initiative aimed at generating $1.5bn (€1.34bn) annually, which it plans to channel back into its pipeline of experimental medicines.
The profit surge marks a significant acceleration from the 2% growth seen in the previous quarter. Revenue for the July-to-September period climbed 7% to $16.2bn (€14.5bn), with oncology—its largest therapeutic area—contributing 48% of total sales. Sales of cancer drugs rose 17% to $7.8bn (€6.99bn), led by the lung cancer treatment Tagrisso and the immunotherapy Imfinzi.
Core earnings per share, which exclude restructuring costs and amortisation of acquired assets, increased 17% to $2.79. The company's savings programme, dubbed "Reshaping for Sustainable Growth," will incur one-off restructuring charges of up to $2bn (€1.79bn) and is expected to be largely completed by the end of 2029.
According to AstraZeneca, the savings will be reinvested primarily in its drug development pipeline, which currently includes more than 180 projects. The company intends to "redeploy resources" across its existing operations to support these initiatives. While no specific job cuts have been announced, restructuring of this scale often involves workforce reductions.
Challenges from generics and China
The strong performance came despite headwinds in some of its older products. Sales of Farxiga, a treatment for diabetes, heart and kidney disease, fell 25% to $1.6bn (€1.43bn) after generic versions entered the US market. Similarly, the blood thinner Brilinta lost patent protection, further pressuring revenues.
AstraZeneca is also navigating the impact of China's volume-based procurement scheme, a state bulk-buying programme that forces drugmakers to slash prices in exchange for large orders. This has weighed on sales in the country, a key growth market.
CEO Pascal Soriot expressed confidence in the company's trajectory, stating: "With multiple potential blockbuster assets in late-stage development and transformative technologies scaling rapidly, we are on track to deliver our 2030 ambition."
The company reaffirmed its 2026 outlook, projecting mid-to-high single-digit revenue growth and low double-digit core earnings per share growth, excluding currency fluctuations. It remains committed to its target of $80bn (€71.7bn) in annual revenue by 2030, up from nearly $59bn (€52.9bn) in 2025, with half of that expected to come from the US.
AstraZeneca has been deepening its presence in the American market, adding a direct share listing in New York in February, while also pledging to invest $15bn (€13.4bn) in China by 2030. So far this year, the company has reported 12 positive results from late-stage trials and is developing a weight-loss treatment to compete with drugs like Novo Nordisk's Wegovy and Eli Lilly's Mounjaro.
