Astrazeneca, revenues above expectations at $15.2 billion

AstraZeneca beat analysts' forecasts for the third quarter, buoyed by strong demand for its flagship cancer and diabetes drugs, but the stock struggled on the stock market with a decline of around 0.5 per cent after an initial rise of 1 per cent.

Earnings per share, net of certain non-recurring items, increased 14% to $2.38, exceeding the $2.30 expected by analysts polled by Bloomberg, on turnover rose to $15.2 billion, above market estimates. Following the results, the British group confirmed its full-year guidance. This disappointed analysts who had expected an upward revision of the forecast instead.

Drugs that supported quarterly growth included the cancer drug Imfinzi, with $1.6 billion in sales, above expectations, and the diabetes treatment Farxiga. Enhertu, a new cancer therapy, also far exceeded expectations. In recent months, AstraZeneca also reported positive clinical results for experimental drugs against breast cancer and hypertension.

The group's decision to confirm guidance rather than raise it was deemed 'conservative' by Intron Health analyst Naresh Chouhan, who said this could imply a slowdown in the current quarter due to more challenging comparison bases than the rest of the year.

Under the leadership of CEO Pascal Soriot, AstraZeneca has transformed itself into a powerhouse in the field of oncology. Oncology drugs, together with an expanding portfolio in the cardiovascular and metabolic areas, will continue to drive growth for the foreseeable future, but the company is also aiming to enter the lucrative obesity market to further boost results.