AstraZeneca Q1 Earnings Rise, But China Drug Allegations May Lead To $8 Million Penalty

AstraZeneca Plc AZN on Tuesday reported first-quarter 2025 sales of $13.59 billion, up 7% year over year (+10% at constant currency), slightly missing the consensus of $13.71 billion, driven by double-digit growth in oncology and biopharmaceuticals.

The company’s adjusted EPADS reached $1.25, beating the consensus of $1.11. The adjusted EPS was $2.09 (1 ADR = 2 Common Shares).

AstraZeneca’s top business, oncology, increased 10% (up 13% on constant currency) to $5.64 billion.

• Tagrisso sales were up 5% to $1.68 billion (8% at CER), Imfinzi revenues were up 13% (+16%) to $1.26 billion, Calquence sales increased 6% to $762 million, Lynparza sales increased 3% (+8%) to $726 million, and Enhertu revenue was up 29% (39% at CER) to $596 million.
• On Tuesday, The Committee for Medicinal Products for Human Use of the European Medicines Agency recommended approving a fixed-duration regimen of Calquence in combination with venetoclax, with or without obinutuzumab, for adult patients with previously untreated chronic lymphocytic leukemia.

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Cardiovascular, Renal, and Metabolism (CVRM) sales increased 8% (up 12% at CER) to $3.25 billion.

• Farxiga sales were up 11% (16% at CER) to $2.06 billion.

Respiratory & Immunology (R&I) sales increased 11% (13% CER) to $2.08 billion.

• Symbicort revenues fell 6% (-3% CER) to $723 million, and Fasenra sales increased 17% (+19%) to $418 million.

Rare Disease drug sales decreased by 3% to $2.04 billion.

• Ultomiris sales were up 22% (25% at CER) to $1.05 billion, offset by a 40% decline in Soliris (38% at CER) to $444 million.

China: In relation to the illegal drug importation allegations, AstraZeneca received an Appraisal Opinion from the Shenzhen City Customs Office regarding suspected unpaid importation taxes amounting to $1.6 million, referring to the Appraisal Opinion related to Enhertu.

• A fine of between one and five times (up to $8 million) the amount of unpaid importation taxes may also be levied if AstraZeneca is found liable.
• China’s sales accounted for 13% of quarterly sales, which is up 3% on a reported basis to $1.81 billion (+5% at CER).

AstraZeneca CEO Pascal Soriot said the company is “firmly committed to investing and growing in the U.S.” and continues to benefit from a “broad-based source of revenue and global manufacturing footprint.”

AstraZeneca has 11 production sites in the U.S. covering small molecules, biologics as well as cell therapy. It also has two large R&D sites in Gaithersburg MD and Cambridge MA.”

Guidance: For fiscal year 2025, AstraZeneca forecasts total revenue to increase by a high single-digit percentage and core EPS to increase by a low double-digit percentage.

On Tuesday, AstraZeneca announced the discontinuation of its CAPItello-280 Phase 3 trial of Truqap (capivasertib) in combination with docetaxel and androgen-deprivation therapy (ADT) compared to docetaxel and ADT with placebo in patients with metastatic castration-resistant prostate cancer.

The Independent Data Monitoring Committee reviewed and concluded that the Truqap combination was unlikely to meet the dual primary endpoints of radiographic progression-free survival and overall survival versus the comparator arm upon trial completion.

Price Action: AZN stock is down 0.13% at $69.84 during the premarket session on last check Tuesday.

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