AZ's Q3 sales reach record $15bn, but it holds guidance

AstraZeneca has taken another step forwards towards its target of growing annual sales to $80 billion by the end of the decade, after reporting third-quarter revenues that topped $15 billion for the first time.

Strong sales of cancer therapies were a major reason for the encouraging result, rising 18% to $6.64 billion with immunotherapy Imfinzi (durvalumab) and anti-HER2 drug Enhertu (trastuzumab deruxtecan) leading the charge, and the overall revenue result came in ahead of analyst expectations.

The only disappointment for investors was AZ's decision to hold its current financial guidance for the full year, a high single-digit percentage in revenues, which could reflect some uncertainty about the impact of its recently announced drug-pricing deal in the US designed to reduce the impact of the Trump administration's pharma tariffs.

The company's update does not speculate about the likely effect of that deal on future revenues, and it said its reason for holding guidance was related to rising costs and generic competition to some of its brands, including older cancer drugs Lynparza (olaparib) and Faslodex (fulvestrant) and the start of low-cost competition to blockbuster cardiorenal drug Farxiga (dapagliflozin), which saw sales decline slightly in the US.

AZ chief executive Pascal Soriot said the results show "strong underlying momentum" that "sets us up well to sustain growth through 2026 and has us on track to deliver our 2030 ambition."

Earlier this week, AZ's shareholders voted in favour of pursuing a full listing for the company on the New York Stock Exchange, which would run parallel to its London listing but nevertheless is seen as a blow to the UK exchange's reputation and could lead to trading volumes in AZ shares – the UK's most valuable company – shifting to the US. The direct listing on the NYSE is expected to go live on 2nd February next year.

AZ has already made it clear its focus is on investing in the US market – which accounts for 30% of its sales – and started constructing a new $4.5 billion facility in Virginia last month after abandoning a smaller manufacturing investment project in the UK.

Soriot said the company is "delivering on our strategy to strengthen our operations in the US to power our growth."

Near-term sales growth looks set to be driven by recent clinical trial readouts for Enhertu in early-stage breast cancer and TROP2-targeting drug Datroway (datopotamab deruxtecan) in triple negative breast cancer, as well as the potential launch of new blood pressure therapy baxdrostat, said Soriot.