About the Company

AstraZeneca, a global pharmaceutical firm headquartered in the United Kingdom, has undergone a significant transformation over the past decade. The company has focused heavily on innovation, strategic acquisitions, and operational efficiency, helping to maintain consistent growth while diversifying its revenue streams. One of the most important milestones has been the expansion of its oncology portfolio, which now represents a critical pillar of revenue growth and strengthens its leadership in oncology and immunology. In recent years, AstraZeneca has pursued an aggressive acquisition strategy to boost new drug development while adapting to legal and market challenges. Major deals include the $2.4 billion acquisition of Canadian firm Fusion Pharmaceuticals, which specializes in radiopharmaceuticals, and the potential $1 billion purchase of EsoBiotec, a company focused on cell therapy.

U.S. Investment Plan

On July 21, 2025, AstraZeneca announced an ambitious plan to invest up to $50 billion in the United States by 2030, marking one of the largest commitments by a European pharmaceutical company on American soil. The investment will span both manufacturing and R&D. Of this total, $4 billion is earmarked for a new facility in Virginia focused on treatments for chronic illnesses. The company also intends to capitalize on existing U.S. infrastructure, including two major R&D centres in Gaithersburg, Maryland, and Cambridge, Massachusetts. The timing is no coincidence. AstraZeneca is responding to the potential imposition of U.S. tariffs on imported drugs from Europe, driven by shifts in trade policy. By ramping up its manufacturing and R&D capabilities within the U.S., the company aims to shield itself from supply chain disruptions and increased costs associated with tariffs. This move also strengthens its position in the world's largest pharmaceutical market.

The Broader Impact of Potential Tariffs on Pharma

AstraZeneca's U.S. investment is part of a broader trend among European pharmaceutical companies relocating production and research operations to the United States in anticipation of potential tariffs. Tariffs on imported medications could raise costs for firms that rely on European manufacturing, leading either to higher prices for patients or reduced profit margins. Localization strategies, like AstraZeneca’s, could significantly reshape the industry by accelerating investment in U.S.-based facilities, creating new jobs, and fostering innovation. Conversely, companies lacking sufficient resources or flexibility to follow suit may become more vulnerable to policy shifts. This development could further entrench the dominance of the largest globally integrated pharmaceutical giants.

Promising Advances in Cancer Treatment

AstraZeneca continues to affirm its leadership in oncology. The latest results from the Phase 3 FLAURA2 clinical trial revealed that combining its flagship drug TAGRISSO with chemotherapy significantly improves survival rates in patients with advanced EGFR-mutated lung cancer. This breakthrough comes at a time when AstraZeneca’s market capitalization stands at approximately $213 billion and boasts an exceptionally high gross margin of 82%, making it one of the most profitable firms in the sector. New indications for TAGRISSO, along with recent approvals for drugs like Imfinzi and Datroway, are expected to support continued revenue growth in key areas.

Latest Financial Results and Segment Performance

In Q1 2025, AstraZeneca reported a 7.17% year-over-year increase in total revenue, reaching $13.6 billion, in line with previous guidance. Net profit rose by 33% to $2.9 billion, while adjusted earnings per share (EPS) climbed 21% to $2.49, driven by both established and new products. Oncology remained the company’s strongest segment. Positive clinical trial results are expected to help AstraZeneca maintain its leadership in cancer treatment and contribute significantly to future revenues. The broader product portfolio including treatments for immunological, respiratory, and rare diseases also performed well, helping to diversify risk and support overall growth.[1]

For Q2 2025, the company is expected to report revenue of approximately $14.08 billion. This would represent only a slight increase over Q1 in nominal terms, but an estimated 11% growth in both revenue and profit when measured in local currencies. Investors will focus closely on the performance of the oncology segment and other key areas, as well as whether the company meets its stated expectations. Any signs of impact from changing trade policy will also be under scrutiny.[2]

AstraZeneca stock performance over the past 5 years. (Source: tradingview.com)*

Conclusion

Despite solid fundamentals, as of July 22, 2025, AstraZeneca shares were trading at their lowest level since May, down 21% from their all-time high in August of the previous year. This may represent a potential buying opportunity for investors. Given that this is a pharmaceutical company regularly facing high R&D costs, regulatory risks, and long timelines for drug approvals, such consistent revenue and profit growth is remarkable. It reflects a strong capacity for innovation and an effective business model.*

[1] [2] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which is subject to change. Such statements are not a guarantee of future performance. They involve risks and other uncertainties that are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.

* Past performance is not a guarantee of future results