AstraZeneca shares climb after earnings beat estimates as cancer drug portfolio drives strong growth | Stock Market News

AstraZeneca Plc. shares rose on Monday after the British pharmaceutical giant reported stronger-than-expected quarterly earnings, fueled by robust demand for its blockbuster cancer treatments and growing optimism around its next generation of oncology medicines.

The stock gained as much as 2% in London trading, helping pare its losses for the year. By 4:56 p.m. GMT, AstraZeneca shares were up 1.72%, or 218 pounds, at 12,888 pounds. Despite the day's gains, the stock remains down 5.18% so far this year.

Adjusted earnings per share, excluding certain items, climbed 21% to $2.63 in the latest quarter, comfortably surpassing analysts' expectations.

The earnings growth was driven by continued strong demand for key oncology medicines, including Enhertu, used to treat breast cancer, and Imfinzi, a leading therapy for lung cancer.

Under Chief Executive Officer Pascal Soriot, AstraZeneca has established itself as one of the world's leading oncology companies, building a portfolio of blockbuster drugs such as Tagrisso and Imfinzi, while continuing to expand its cancer pipeline.

The company reaffirmed its full-year guidance and said it remains on course to achieve $80 billion in annual revenue by 2030. Speaking to Bloomberg Television, Chief Financial Officer Aradhana Sarin said AstraZeneca also expects to sustain a similar pace of growth beyond 2030, describing the company's long-term growth potential as one of its most overlooked strengths.

Alongside its quarterly results, AstraZeneca announced encouraging clinical data for an experimental treatment targeting gastric cancer. However, it also reported disappointing results for Ultomiris in a study involving a rare blood disorder.

The company also raised expectations for tozorakimab, an experimental treatment for chronic obstructive pulmonary disease (COPD), saying it now sees the drug generating more than $5 billion in annual sales if successfully commercialized.

Commenting on another clinical study, Soriot said researchers had broadly expected positive results from the Wainua trial. However, findings showed that the drug did not produce the anticipated benefit when combined with a stabilizer therapy.

Describing the outcome as an important scientific insight, Soriot said the unexpected results provide valuable lessons for the cardiology community.

"It should have worked. Biology is biology—it doesn't always deliver what you expect," he said during a conference call.

Investors are also awaiting results from two closely watched cancer drug trials involving Datroway and the experimental medicine camizestrant. Datroway has already received approval for one type of breast cancer, while a new study is evaluating its effectiveness in treating lung cancer.

Beyond oncology, AstraZeneca continues to strengthen its cardiovascular and metabolic disease portfolio, with obesity treatments emerging as a major strategic priority.

The company's experimental oral obesity drug helped participants lose up to 11.8% of their body weight in a clinical trial, placing it in a competitive position against existing therapies. AstraZeneca plans to combine the pill with other treatments to differentiate its offering in the rapidly expanding weight-loss market, where Eli Lilly and Novo Nordisk currently hold leading positions.

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