AstraZeneca's Forecast Boost Amidst China Challenges

AstraZeneca has raised its annual sales and profit forecast for the second time in four months, driven by strong demand for cancer and rare diseases drugs. Despite impressive third-quarter results, the company faces challenges in China, reflecting in their stock performance. AstraZeneca is heavily investing in the U.S. to expand research.

AstraZeneca has once again raised its annual sales and profit forecast, attributing this optimistic outlook to a steady demand for its cancer and rare diseases medicines. The announcement came after the company's third-quarter results surpassed market expectations.

In 2024, AstraZeneca anticipates revenue and core earnings per share will grow by a high-teens percentage. This marks an upward revision from a previous mid-teens percentage forecast, according to CEO Pascal Soriot. However, challenges persist, particularly with their operations in China, where the market has reacted to ongoing investigations.

The company reported substantial growth in its oncology segment and plans to invest $3.5 billion in expanding research and manufacturing in the United States by 2026. These strategic moves come amid a significant decrease in the company’s share price, partially due to market concerns surrounding their Chinese business dealings.

(With inputs from agencies.)