STOCKS | AstraZeneca Launches $1.5 Billion Cost-Saving Plan to Fund Drug Pipeline

AstraZeneca has launched a $1.5 billion cost-saving plan to free up funds for its drug development pipeline. According to Sina Finance, the British pharmaceutical company announced the plan alongside its third-quarter results on Friday, saying it will reallocate resources across its existing businesses and therapeutic areas over the next three years. The plan could incur up to $2 billion in one-time restructuring costs and deliver annualized savings of $1.5 billion, which will be reinvested in the pipeline, which includes more than 180 projects. AstraZeneca reported third-quarter net profit of $3.12 billion, up from $2.535 billion a year earlier. Core earnings per share, excluding special items and currency fluctuations, rose 19% to $2.79, above the Visible Alpha analyst consensus of $2.59. Revenue increased 7% year over year at constant exchange rates to $16.21 billion, exceeding the $15.99 billion consensus. Double-digit sales growth in oncology, respiratory and immunology, and rare diseases helped offset losses from generic competition for Farxiga and Brilinta. The company reiterated its 2026 guidance. AstraZeneca said several late-stage clinical trial setbacks this year had weighed on its shares, prompting some analysts to question whether it can meet its 2030 targets, set in 2024: revenue of $80 billion and 20 new drug launches. Revenue was $58.7 billion last year and $45.8 billion in 2023. CEO Pascal Soriot said on Friday that the company remained on track to meet its 2030 goals and expected business growth to continue over the coming decade.