AstraZeneca Boosts 2024 Sales Forecast, Unveils $3.5 Billion U.S. Expansion Amid Rising Drug Demand

Highlights

• AstraZeneca raises full-year sales outlook, forecasting high-teens percentage growth.
• Plans $3.5 billion U.S. investment by 2026, creating over 1,000 skilled jobs.
• Reports strong Q3 results, beating revenue and earnings projections.

British pharmaceutical giant AstraZeneca (LSE:AZN) has raised its 2024 sales forecast, driven by strong demand for its cancer and rare-disease drugs, and announced plans to invest $3.5 billion in the U.S. market by 2026. The move highlights AstraZeneca’s commitment to expanding its foothold in the U.S. as it continues on a robust growth path.

In an updated forecast, the company now expects revenue and core earnings per share (EPS) for fiscal 2024 to increase by a high-teens percentage, up from the previously anticipated mid-teens growth. CEO Pascal Soriot attributed the optimistic outlook to soaring demand across key areas, especially oncology, biopharmaceuticals, and rare diseases. “Our company has continued on its strong growth trajectory in the first nine months of 2024,” Soriot stated, underscoring that the revised forecast is rooted in AstraZeneca's expanding portfolio and demand for innovative medicines.

The company’s ambitious $3.5 billion U.S. investment plan is set to create more than a thousand high-skilled jobs and will support a range of research, manufacturing, and advanced therapeutic capabilities. According to AstraZeneca, $2 billion of the funds will focus on developing these new jobs, expected to drive both economic growth and innovation in the U.S. healthcare landscape. The investment will fuel the construction of a research and development (R&D) hub in Cambridge, Massachusetts, and a next-generation biologics manufacturing facility in Maryland. Additional funds will support specialty manufacturing operations in Texas and cell therapy manufacturing on both U.S. coasts. AstraZeneca did not specify exact locations for the latter facilities.

In a further display of financial strength, AstraZeneca also announced better-than-expected results for its third quarter. Revenue came in at $13.57 billion, up from $11.49 billion for the same period last year and surpassing analyst expectations of $13.07 billion, based on data compiled by Visible Alpha. The company also reported a core EPS of $2.08, slightly exceeding the $2.06 consensus estimate.

However, challenges remain in some regions. AstraZeneca addressed recent issues in China, where several senior company executives were implicated in a high-profile insurance fraud investigation. The company stated it has not been notified that it is under direct investigation. “We take the matters in China very seriously,” Soriot assured, adding that AstraZeneca will cooperate fully with authorities if required.