AstraZeneca shares rise on US approval of lung cancer treatment

AstraZeneca shares were the FTSE 100 Index’s top riser on Monday morning after one of its medicines was authorised for use by US regulators.

The pharmaceutical giant’s shares climbed 3.15 per cent, or 318p, to £104.12 as it revealed that the lung cancer drug Tagrisso, together with chemotherapy, has been approved by the US Food and Drug Administration.

It follows a trial showing that those who received the combination saw their risk of death or disease progression from non-small cell lung cancer fall by 38 per cent compared to people who just took Tagrisso.

Those on the former had a median progression-free survival – the length of time a patient lives without the disease worsening post-treatment – of 25.5 months versus 16.7 months for the latter.

Sales of Tagrisso increased by 9 per cent at constant exchange rates to $5.8billion last year thanks to solid growth across the US and emerging markets.

Last year, it was AstraZeneca’s highest-selling product behind Farxiga, a medication for treating type 2 diabetes, heart failure and chronic kidney disease.

Pasi A. Jänne, the trial’s principal investigator, said: ‘With the choice of two highly effective Osimertinib-based options, physicians can better tailor treatment to an individual’s needs and help ensure the best possible outcome for each patient.’

Laurie Ambrose, president and chief executive of charity GO2 for Lung Cancer, added: ‘We are so excited to see this continued progress advancing more personalised treatment options for our community.

‘The more we can target the right treatments for the right people at the right time, the better outcomes will be for our community – a goal we all collectively share.’

In 2023, AstraZeneca’s cancer drug sales climbed by 21 per cent to $18.4billion (£14.5billion), which comprised about 40 per cent of its total $45.7billion turnover.

As well as Tagrisso and Farxiga, the firm achieved significant growth in demand for the leukaemia drug Calquence and bile duct cancer treatment Imfinzi, which offset a plunge in Covid-19 vaccine sales.

As a result, AstraZeneca’s pre-tax profits more than doubled from $2.5billion the previous year to $6.9billion. 

For the current year, the London-based business expects both revenue and core earnings per share to expand by a low double-digit to low teens percentage.