- AstraZeneca expects its restructuring programme to generate $1.5bn in annualised savings by 2029, with most of the money reinvested in research and development.
- The plan could incur up to $2bn in one-off restructuring costs, although the company expects its overall workforce to continue growing.
- Third-quarter revenue rose 7 per cent to $16.21bn, while oncology sales increased 17 per cent to $7.77bn.
AstraZeneca has unveiled plans to generate around $1.5bn in annual savings through a three-year restructuring programme, as chief executive Pascal Soriot shifts the focus back to growth and investment in its drug pipeline.
The British-based pharmaceutical group said its Reshaping for Sustainable Growth programme would redirect resources towards research and development, particularly its pipeline of more than 180 projects and emerging technologies.
The initiative is expected to deliver annualised pre-tax savings of $1.5bn by 2029, but could involve one-off restructuring costs of up to $2bn.
The announcement came alongside stronger-than-expected third-quarter results, helping lift AstraZeneca shares by around 6 per cent during Friday's trading session. The stock rose as much as 7.3 per cent earlier, putting it on course for its biggest one-day gain in a year.
Soriot said the company remained confident about its longer-term prospects.
“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,” he said.
The company has set a target of reaching $80bn in annual revenue by 2030. Its strategy relies on expanding its portfolio of high-value medicines, particularly in cancer, rare diseases and other specialist treatment areas.
Restructuring as patent pressures build
AstraZeneca has provided limited details about where the savings will come from. Executives said some departments would face cutbacks or restructuring, while other parts of the business would recruit and retrain staff to meet changing requirements.
The company does not expect the programme to result in a net reduction in its workforce. Chief financial officer Aradhana Sarin said some positions would be eliminated, but new roles would be created as resources were redirected across business areas and regions.
Soriot said the intention was to reshape the organisation rather than shrink it, with investment in new research areas expected to support further employment.
The restructuring comes as major pharmaceutical companies face pressure to replace established medicines whose patents are expiring, opening the door to cheaper generic competition.
AstraZeneca's diabetes drug Farxiga, for example, recorded a 25 per cent fall in third-quarter sales to $1.61bn as generic competition affected its performance. Other established medicines, including Brilinta, Lynparza and Symbicort, have also lost market exclusivity in certain markets.
The company has faced questions about its development pipeline following clinical trial setbacks involving camizestrant and Wainua earlier this year. It has also been the subject of speculation over a possible combination with US rival Bristol Myers Squibb, although Soriot has said a major acquisition is not necessary to sustain growth beyond 2030.
Cancer medicines drive quarterly growth
AstraZeneca reported core earnings of $2.79 per share for the third quarter, ahead of analysts' expectations of $2.59. Revenue increased 7 per cent at constant exchange rates to $16.21bn, compared with forecasts of $15.94bn.
Its oncology division remained a major growth driver, with revenue rising 17 per cent to $7.77bn. Sales of Enhertu increased 35 per cent to $969m, while Imfinzi revenue rose 26 per cent to around $2bn.
The performance helped offset weaker sales from older medicines facing generic competition. The company maintained its 2026 financial outlook following the results.
Investor attention is now turning towards 2027, when AstraZeneca expects a series of late-stage clinical trial results. Soriot highlighted 23 key readouts that could collectively represent more than $20bn in potential peak annual sales.
The company is also continuing to pursue partnerships and investments to strengthen its portfolio. It recently completed a $2bn equity investment in US biotechnology company Summit Therapeutics, as part of a collaboration involving cancer treatments.
For AstraZeneca, the savings programme is intended to provide more financial capacity to develop the next generation of medicines while protecting its position in a competitive pharmaceutical market. Its ability to convert promising clinical projects into successful treatments will be central to whether it can meet its 2030 revenue ambition.
