AstraZeneca Shares Rise as China Investigation Impact Appears Limited
AstraZeneca's shares rose after the company reported better-than-expected Q4 2024 results and provided an update on the China investigation12.
The company disclosed that it could face a fine of up to $4.5 million in China over suspected unpaid import taxes for two cancer drugs, which reassured investors about the limited financial impact2.
AstraZeneca reported a 21% increase in annual revenues, reaching £43bn ($54.1bn) in 2024, driven by strong sales in oncology, respiratory, and immunology treatments1.
The company's China business experienced a 3% sales decline in Q4 2024, attributed to hospital budget management and a mild winter reducing demand for respiratory treatments4.
AstraZeneca reaffirmed its commitment to the Chinese market despite ongoing investigations and pricing pressures5.
The company provided guidance for FY 2025, expecting high single-digit percentage growth in Total Revenue and low double-digit percentage growth in Core EPS6.
AstraZeneca plans to increase its annual dividend to $3.20 per share in FY 2025 and expects to increase capital expenditure by approximately 50%6.
Sources:
1. https://www.pharmaceutical-technology.com/news/astrazenecas-shares-rise-as-it-addresses-china-investigation/
2. https://www.youtube.com/watch?v=E41IfCqK9IA
4. https://www.fiercepharma.com/pharma/astrazeneca-warns-potential-tax-fines-amid-chinas-illegal-drug-importation-probe
5. https://endpts.com/astrazeneca-offers-some-detail-on-china-probe-reaffirms-commitment-to-that-market/
6. https://www.astrazeneca.com/content/dam/az/PDF/2024/fy/Full-year-and-Q4-2024-results-announcement.pdf