AstraZeneca PLC (AZN) Q3 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic Advances

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Total Revenue: Increased by 11% in the first nine months of 2025. Core EPS: Increased by 15% to $7.04. Oncology Revenue: Grew 16% to $18.6 billion in the first nine months. Biopharmaceuticals Revenue: Grew 8% to $17.1 billion year-to-date. Rare Disease Revenue: Increased by 6% to $6.8 billion in the first nine months. Core Gross Margin: 83% for the first nine months. R&D Expenses: Increased by 16%, accounting for 23.3% of total revenue. Operating Margin: Core operating margin at 33.3% for the first nine months. Cash Flow from Operating Activities: Increased by 37% to $12.2 billion year-to-date. Interest-Bearing Debt: Approximately $33 billion with a net debt-to-EBITDA ratio of 1.2 times. Guidance: Full year guidance reiterated with total revenue and core EPS anticipated to increase by high single-digit and low double-digit percentage, respectively.

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Release Date: November 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

AstraZeneca PLC (NASDAQ:AZN) reported a strong revenue growth of 11% for the first nine months of 2025, driven by demand for innovative medicines. The company achieved 31 regulatory approvals across key regions, accelerating the pace of bringing new medicines to patients. AstraZeneca's oncology franchise grew by 16%, reflecting strong global demand for its medicines. The company announced positive results from 16 Phase III trials, showcasing its robust pipeline. AstraZeneca PLC (NASDAQ:AZN) has a strategic agreement with the US government, providing clarity on pricing and a three-year exemption from tariffs.

Negative Points

The core gross margin is anticipated to decrease slightly for the full year due to Medicare Part D reform and increased profit sharing from partnered products. R&D expenses increased by 16% in the first nine months, driven by high activity and significant investments in pipeline opportunities. The company faces challenges in Europe regarding innovation funding and pricing pressures. AstraZeneca PLC (NASDAQ:AZN) anticipates a sequential step-up in both R&D and SG&A expenses in the fourth quarter. The loss of exclusivity for certain mature brands, including Brilinta, impacted revenue growth in the CVR therapy area.

Q & A Highlights

Q: Can you comment on the risk of residual activity from the US administration and the $10 billion catalyst potential? A: We have addressed the four points in the President's letter, covering Medicaid, price equalization, direct to consumer, and price increases for existing products. We expect no further actions from the US government. The $10 billion is part of our $80 billion ambition, contributing to our 2030 goals.

Story Continues

Q: What are your thoughts on the potential impact of the CARDIO-TTRansform study on treatment guidelines and diagnostic tests for cardiomyopathy? A: The CARDIO-TTRansform study could transform treatment algorithms for ATTR amyloidosis. We are exploring AI-informed models and new biomarker assays for earlier diagnosis. We aim to create a combination approach with a depleter and silencer for better patient outcomes.

Q: How are you approaching the competitive landscape in obesity and the potential of your BCMA CAR-T? A: We are advancing multiple molecules in our obesity portfolio, aiming for competitive profiles. For BCMA CAR-T, we are excited about the efficacy and safety profile, with plans to start Phase III trials next year.

Q: Can you discuss the read across from TROPION-Breast02 data and the growth trajectory for Imfinzi? A: The TROPION-Breast02 data highlights the importance of linker stability in ADC design, leading to better efficacy and safety. Imfinzi's growth is driven by new indications and strong differentiation, with further expansion expected.

Q: What are your expectations for baxdrostat following the upcoming data release? A: We are excited about baxdrostat's potential, especially its impact on aldosterone and 24-hour blood pressure control. The upcoming data will demonstrate its efficacy, and we believe it could significantly impact the treatment of uncontrolled hypertension.

Q: How do you view the political environment in Europe regarding innovation and investment? A: Europe needs to increase budgets for innovative pharmaceuticals to support innovation and economic growth. The risk is losing control of supply chains for innovative technologies if investments are not made.

Q: What are your thoughts on the competitive developments in asthma and COPD treatments? A: Efficacy remains the primary driver for prescribing decisions. We are developing an inhaled T-slip molecule to broaden patient access and address unmet needs in severe asthma.

Q: How do you see the trajectory for ENHERTU with upcoming approvals? A: ENHERTU's trajectory is promising with upcoming approvals in early-stage breast cancer. We expect significant uptake as it moves into earlier treatment settings, with potential blockbuster opportunities.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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