AstraZeneca reports 23% profit rise and announces $1.5bn savings plan

AstraZeneca has reported a 23% increase in third-quarter net profit, reaching $3.12 billion, driven largely by strong sales in its oncology division. Oncology revenue rose 17% to $7.8 billion, led by the lung cancer drug Tagrisso and the immunotherapy Imfinzi.

Alongside these financial results, the company unveiled a restructuring programme titled “Reshaping for Sustainable Growth.” The initiative aims to generate approximately $1.5 billion in annual savings by 2029. These funds are intended to be reinvested into the company’s research and development pipeline, which currently includes more than 180 projects.

The restructuring may incur up to $2 billion in one-off costs. While the company has not announced specific job cuts, executives noted that resources will be redeployed, involving up to upskilling and hiring in emerging technology areas while reorganizing other departments. This strategy supports CEO Pascal Soriot’s long-term goal of reaching $80 billion in annual revenue by 2030.

Despite the growth, the company faces challenges from patent expirations and generic competition, noting a 25% decline in sales for the diabetes and kidney treatment Farxiga in the US market.