AstraZeneca Sees Boost in Sales and Profits Amid Rising Legal Battles in China

AstraZeneca reported higher core earnings per share and revenue for the initial three months, yet they cautioned about growing legal issues in China.

The prominent UK-based drug manufacturer announced on Tuesday that its basic earnings per share—the key figure favored by the corporation, excluding extraordinary and other single-instance events—rose to $2.49 from $2.06 compared to the corresponding time last year.

The total revenue increased by 10% at a consistent exchange rate to reach $13.59 billion. Within the company's oncology division—the leading sector of their business—revenues climbed by 13%, totaling $5.64 billion. This growth was fueled by strong demand for the lung cancer medication Tagrisso along with its therapy Imfinzi. Revenues from operations in China went up by 3%, amounting to $1.805 billion.

According to analysts' compiled consensus from the company, the expectation was for core earnings per share of $2.27 with sales totaling $13.80 billion.

During early trading in London, AstraZeneca's shares dropped more than 4%. Over the past year, the stock has decreased by 16%.

AstraZeneca maintained its financial goals for 2025 and expressed its commitment to invest and expand within the U.S., despite facing potential tariffs from President Trump. Given that revenues from the U.S. account for almost half of their overall sales, the company had previously promised to inject $3.5 billion into American R&D and manufacturing efforts by the conclusion of 2026.

The pharmaceutical company also mentioned that it might have to pay a penalty of as much as $8 million if it is determined responsible in an investigation regarding purportedly unlawful medication imports into China.

AstraZeneca stated that, as far as it knows, the issue concerns the importation of its breast cancer medication, Enhertu. The corporation mentioned that they were issued an official statement by the municipal authorities in Shenzhen, indicating approximately $1.6 million in unreported taxes, along with a possible fine ranging from one to five times this sum.

AstraZeneca depends more heavily on China compared to many of its competitors. Last year, approximately 12 percent of the company’s revenues were earned from this market. This significant reliance drew attention from investors following investigations initiated by Chinese regulators into the pharmaceutical firm as well as the arrest of its head for China.

In February, the firm revealed that they could face charges amounting to as much as $4.5 million related to potential violations involving the unauthorized importation of cancer medications Imfinzi, Imjudo, and possibly Enhertu.

AstraZeneca also mentioned that Chinese officials did not find any proof of unlawful benefits for the company in an unrelated matter involving allegations of personal data breaches.

The firm expressed its belief in achieving a $80 billion revenue target by the year 2030.

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