At this time (6 February) was good for shareholders of AstraZeneca (LSE: AZN). The FTSE 100‘s largest firm vaulted 5.9% greater to 11,786p after dropping a robust set of earnings.

This helped push the Footsie up to eight,766, a file intraday excessive. Rates of interest had been additionally lower at the moment, bringing down the price of borrowing to 4.5%. So extra features could possibly be forward.

I added to my holding within the pharma big in early November when the inventory dipped beneath 10,000p. This adopted information that some executives had been beneath investigation in China, which I suspected may not matter 5 years from now. We additionally obtained information about that at the moment.

Robust development and surging earnings

In 2024, AstraZeneca’s income jumped 21% yr on yr to $54.1bn on a continuing forex foundation. That was forward of steering for high-teens development and higher than what analysts had been anticipating ($53.1bn).

Gross sales development was sturdy throughout the board, with its oncology (up 24%) and respiratory and immunology (24%) divisions main the best way. Most cancers remedies account for round 41% of whole gross sales.

areas, Europe (up 26% at fixed alternate charges) and rising markets excluding China (32%) grew the quickest. But its largest market, the US, recorded spectacular 22% income development final yr.

On the underside line, core earnings per share (EPS) spiked 19% to $8.21, forward of forecasts ($8.15), whereas pre-tax earnings surged 38% to $8.7bn.

CEO Pascal Soriot commented: “This year marks the beginning of an unprecedented, catalyst-rich period for our company, an important step on our Ambition 2030 journey to deliver $80bn total revenue by the end of the decade.” 

Whereas development’s understandably anticipated to be slower in 2025, issues nonetheless look strong. Income’s set to rise by a excessive single-digit share, with EPS rising by a low double-digit share. It wouldn’t shock me if these figures finish up a bit greater this time subsequent yr.

Lastly, the dividend was hiked 7% final yr, although the forecast yield is simply 2.2%.

Ocean-deep medicine pipeline

By my depend, AstraZeneca had 14 blockbuster medicine in 2024, which implies each generated over $1bn in annual gross sales. However a handful of others are additionally getting nearer.

One cause I’m a shareholder is the corporate’s deep pipeline of modern remedies and potential future blockbusters. Final yr, it delivered 9 optimistic late-stage research and anticipates one other seven potential new medicines this yr.

This offers the corporate many pictures on aim, although naturally some will miss the goal. Late-stage trial failures are an unavoidable danger right here, as is opposed regulation. Donald Trump’s well being secretary, the Massive Pharma critic Robert F Kennedy, additionally stays a wildcard.

In the meantime, a worldwide commerce battle triggered by Trump’s tariffs may see AstraZeneca going through a bit extra regulatory scrutiny in China. Talking of which…

A drop within the ocean

What about China then? Properly, this matter pertains to unpaid importation taxes on two most cancers medicine. However the excellent news is that the corporate sees the fantastic for this being between $900k and $4.5m.

Whereas it’s clearly not superb to be within the dangerous books with Chinse authorities, this quantity is small potatoes for a worldwide pharma big.

As a shareholder, I’m pleased with every part I’ve learn right here. However I’ll wait for one more dip earlier than shopping for any extra shares.