AstraZeneca maintains annual outlook
Interim dividend increased by 3%
Q2 sales grow 11% to $14.46 billion; profit of $2.17 per share
Adds analyst comment in paragraph 12, detail on trial in 14 and context throughout; updates shares
July 29 (Reuters) - AstraZeneca AZN.L on Tuesday beat second-quarter revenue and profit expectations on robust sales of newer cancer, heart and kidney disease medicines and strong demand in the U.S., where it has invested $50 billion to expand amid tariff threats from Washington.
The performance is a boost for the UK's largest-listed company by market value as the wider sector braces for U.S. tariffs on pharmaceutical imports and navigates pressure after President Donald Trump's order pushing for drugmakers to cut U.S. prices to what other countries pay.
AstraZeneca shares rose as much as 2.2% by 0813 GMT.
The drugmaker in April forecast only a limited impact from potential U.S. tariffs, adding it would be able to meet its annual outlook if the levies on European imports were similar to those in other industries.
A European Union-U.S. trade deal over the weekend will result in a 15% tariff on pharmaceuticals from the region.
The U.S. accounted for more than 40% of AstraZeneca's revenue in 2024. The company had prioritised the market - the world's largest, worth $635 billion - even before Trump's return to office.
AstraZeneca is betting on a wave of expected launches of 20 new medicines and its U.S. expansion to reach $80 billion in annual revenue by 2030 and offset generic competition. On Tuesday, it maintained its 2025 outlook and increased its interim dividend by 3%.
"Our strong momentum in revenue growth continued through the first half of the year and the delivery from our broad and diverse pipeline has been excellent," CEO Pascal Soriot said.
CANCER DRUGS OUTPERFORM
Sales of oncology drugs, constituting nearly half of AstraZeneca's revenue, were up 18% at $6.31 billion at constant currency rates in the quarter. Jefferies analysts said sales of drugs including Tagrisso, Lynparza, Calquence, Truqap and Imfinzi beat expectations.
Total revenue for the three months ended June grew 11% to $14.46 billion, with double-digit growth in the U.S. despite headwinds from changes in U.S. Medicare price negotiations. Core earnings stood at $2.17 per share.
That compares with analysts' expectations of $2.16, and $14.15 billion in sales, according to a company-provided consensus.
"Operationally, this is the type of quarter we want to see," Barclays analysts said.
AstraZeneca is also hoping to move on from scandals in its second-biggest market, China, where it this year faced minor fines related to cancer drugs. It is also fighting patent challenges from an individual against Tagrisso.
The company also delayed late-stage AVANZAR trial data for a key lung cancer treatment to the first half of 2026.
(Reporting by Pushkala Aripaka and Unnamalai L in Bengaluru, and Maggie Fick in London; Editing by Subhranshu Sahu and Sharon Singleton)
((Pushkala.A@thomsonreuters.com; X and LinkedIn: @pullthekart;))
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