AstraZeneca Reports Third-Quarter Revenue Rise on Oncology and Rare Disease Growth
AstraZeneca PLC reported third-quarter revenue of $13.5 billion, representing 7% growth at constant exchange rates driven by expansion in its oncology and rare disease portfolios, according to a financial results report published by The Motley Fool. Chief Executive Officer Pascal Soriot said the company’s strong momentum allows it to advance its late-stage pipeline toward its long-term corporate targets.
Total revenue for the first nine months of the year reached higher thresholds despite anticipated headwinds from the loss of exclusivity for older cardiovascular treatments. Core earnings per share rose 14% at constant exchange rates to $2.08 in the third quarter, fueled by operational leverage and robust commercial execution across core therapeutic units.
Oncology and Rare Disease Franchises Drive Growth
Oncology revenue reached $21.9 billion for the first nine months of the year, marking a 16% increase with particular strength in the U.S. market. Tagrisso contributed $2.1 billion in the third quarter, a 12% increase year-over-year, supported by broad adoption of the FLAURA2 combination regimen in first-line settings. Enhertu sales grew 35% overall to $969 million in the quarter, with U.S. growth approaching 50%. The rare disease segment generated $7.5 billion across the first nine months, supported by a 19% increase in Ultomiris sales. Meanwhile, the biopharmaceuticals division reported $5.6 billion in third-quarter revenue, down 6% as growth in respiratory and immunology was offset by loss of exclusivity in the cardiovascular segment and volume-based procurement impacts in China. Chief Financial Officer Aradhana Sarin stated that working capital effects from the Farxiga loss of exclusivity will likely persist through the remainder of the year.
Restructuring Program and Pipeline Investments
Management initiated the Reshaping for Sustainable Growth program, a three-year restructuring initiative carrying an estimated $2 billion in restructuring costs. The program aims to deliver $1.5 billion in annualized pretax run-rate benefits by 2029 while redeploying resources into the drug pipeline.
The company also expanded its immuno-oncology footprint through a $2 billion equity investment in Summit Therapeutics to develop combinations of ivonescimab with existing antibody-drug conjugates. Research and development investment accounted for 23% of total revenue in the period, prioritizing bispecific antibodies, cell therapies, and weight management trials.
Frequently Asked Questions
What caused the decline in Farxiga revenue during the third quarter?
Farxiga revenue dropped 23% to $1.6 billion in the third quarter due to generic competition in the U.S. and volume-based procurement impacts in China.
How much did Enhertu generate in the third quarter?
Enhertu recorded $969 million in third-quarter revenue, reflecting a 35% increase overall and nearly 50% growth in the U.S. market.
What is the financial scope of the new restructuring program?
The Reshaping for Sustainable Growth program carries $2 billion in estimated restructuring costs and is designed to deliver $1.5 billion in annualized pretax run-rate benefits by 2029.
What guidance did AstraZeneca reiterate for the full year?
Management reiterated expectations for mid- to high single-digit revenue growth and low double-digit core earnings per share growth for the full year.
The company’s next scheduled financial disclosure will occur alongside its full-year earnings reporting cycle.
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