By Pushkala Aripaka and Patrick Wingrove
Oct 30 (Reuters) – AstraZeneca unveiled plans on Friday to save about $1.5 billion annually to invest in its drug pipeline, sparking the biggest one-day share rally in a year as CEO Pascal Soriot moved to shift the focus back to growth after a turbulent few months.
The more bullish tone signals a revival for the UK-based drugmaker, a long-term market success story, which saw some clinical trial setbacks and talk of a deal for smaller US rival Bristol Myers Squibb weigh on its shares earlier in the year.
“With multiple potential blockbuster assets in late-stage development and transformative technologies scaling rapidly, we are on track to deliver our 2030 ambition and to sustain growth through the next decade,” Soriot said in a statement.
AstraZeneca gave few details of how it will make the savings. On a press call, executives said some departments face cutbacks or restructuring, while others will re-skill and hire for emerging needs. Soriot said shifting focus from patent-expiring drugs such as Farxiga and Brilinta to oncology and rare diseases could render some R&D roles redundant.
Although executives withheld specific employment and geographic targets, they said the company would experience net job growth across different areas.
AstraZeneca shares were up about 6% by 1433 GMT, having risen as much as 7.3% earlier in the day. They are on track to reverse losses from earlier in the year.
The company also beat third-quarter sales and profit forecasts, and maintained its 2026 outlook.
“These results should reassure investors after a turbulent period for what historically has been a really strong business,” said Quilter Cheviot analyst Sheena Berry.
AstraZeneca is increasing investment across its business as Soriot seeks to convince investors the company remains on track to achieve its target of $80 billion in annual revenue by 2030 despite recent clinical trial setbacks. The target relies in part on more than 25 blockbuster medicines.
RESTRUCTURING PLAN
The company said savings from the three-year programme would be reinvested mainly in its pipeline of more than 180 projects, but that it expected to incur up to $2 billion in one-off restructuring charges.
Drugmakers are facing growing investor scrutiny over the strength of their pipelines as patents expire on established blockbuster medicines and future growth becomes increasingly dependent on successful late-stage trial results.
British rival GSK is also pursuing a cost-saving programme.
Questions over AstraZeneca’s pipeline intensified following setbacks involving camizestrant and Wainua. However, investors have generally remained confident that the breadth of the company’s late-stage portfolio leaves it well placed to absorb disappointments.
THIRD-QUARTER BEAT
Core earnings for the quarter were $2.79 per share as revenue rose 7% at constant exchange rates to $16.21 billion, beating analysts’ forecasts of $2.59 per share and $15.94 billion respectively.
Growth was driven by cancer and rare-disease medicines. Oncology revenue rose 17% to $7.77 billion, helped by a 35% jump in Enhertu sales to $969 million and a 26% rise in Imfinzi sales to about $2 billion.
The gains helped offset pressure from older products facing generic competition. Sales of diabetes drug Farxiga fell 25% to $1.61 billion.
AstraZeneca reported operating expenses of $27.56 billion in the first nine months of 2026, up 7% from a year earlier. It said costs would rise again in the fourth quarter in line with seasonal trends.
With 2026 guidance unchanged, analysts said investor attention is increasingly turning to 2027, when AstraZeneca expects a series of late-stage trial results that it says could generate more than $20 billion in peak annual sales.
($1 = 0.7481 pounds)
(Reporting by Pushkala Aripaka, Sri Hari N S in Bengaluru and Patrick Wingrove in London; Editing by Joe Bavier, Mark Potter and Jan Harvey)
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