Remember AstraZeneca, the company behind one of the world’s best-known COVID-19 vaccines? Its stock is back in the spotlight.
Shares surged nearly 7% on Friday after the drugmaker reported stronger-than-expected earnings and unveiled a major cost-cutting plan.
Investors are increasingly confident that its cancer medicines can replace revenue lost when older drugs face cheaper generic rivals.
Why AstraZeneca’s Earnings Excited Investors
Third-quarter revenue rose 7% to $16.21 billion, beating forecasts. Core earnings reached $2.79 per share, against $2.59 expected.
Cancer treatments drove the gains. Oncology revenue jumped 17%, with Enhertu sales up 35% and Imfinzi up 26%, according to the earnings report.
There are warning signs. Farxiga, a major diabetes and heart medicine, lost 25% of sales as generic competition intensified. A breast cancer trial for Etcamah missed its main target, while a lung cancer study was stopped.
AstraZeneca now plans to save $1.5 billion annually, mainly for research, although restructuring could cost up to $2 billion upfront.
Why AstraZeneca Is Betting on AI
The company wants AI to help identify promising drug targets and make expensive clinical research more efficient.
It has acquired Modella AI and struck a deal with insitro to develop treatments for liver and heart diseases.
More than 17,000 employees are AI-certified, with roughly 1,000 pilots running. The financial payoff remains unproven.
“With multiple potential blockbuster assets in late-stage development and transformative technologies scaling rapidly, we are on track to deliver our 2030 ambition.” — Pascal Soriot, AstraZeneca CEO
That ambition is $80 billion in annual revenue by 2030.
How High Could AstraZeneca Stock Go?
Friday’s close put shares above the earlier £131.34 resistance level.
The next technical target is £145.38, followed by the February peak near £157.30.
The rally came with stronger-than-average trading volume, supporting the breakout. Still, an RSI reading above 70 suggests momentum may be stretched. A fall below £131.34 would weaken the bullish case.
Next year’s drug trials will test that optimism.
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