AstraZeneca Downplays Impact of Potential U.S. Tariffs

AstraZeneca anticipates that prospective U.S. tariffs on pharmaceutical products will have a constrained impact, according to a statement released on Tuesday. The drugmaker asserted that it would uphold its 2025 financial projections, assuming the levies are generally consistent with those applied to other industries.

The proposed tariffs and their unpredictable implementation by the previous administration had amplified concerns about disruptions to the global supply chain, unsettling industries with a significant focus on the United States, which represents the world’s largest consumer market.

However, AstraZeneca Chief Executive Pascal Soriot communicated to journalists that the company would be able to cope with the consequences.

“If tariffs are introduced at levels comparable to those recently applied to other sectors concerning medicines imported from Europe into the U.S., we foresee remaining within the financial guidance previously outlined for 2025,” he stated.

A substantial portion of the Anglo-Swedish drugmaker’s revenues is generated from medications produced either within the U.S. or in Europe. Furthermore, the company was already in the process of relocating supplementary manufacturing activities to American facilities, Soriot noted.

“This is something we are prepared to manage,” he said, also mentioning that only limited quantities of U.S.-manufactured drugs are exported to China, mitigating the impact of tariffs in what is the firm’s second-largest market after the United States.

AstraZeneca’s shares experienced a decline of up to 5.4% before reducing losses to trade down 3.2% at approximately 102 pounds by 0929 GMT. This performance trailed behind London’s FTSE 100, which saw a rise of 0.2%.

Soriot’s statements followed the company’s report of total revenue amounting to $13.6 billion for the first quarter, which was less than the $13.8 billion expected by analysts. Sales of essential oncology drugs were below expectations, partly attributed to modifications in U.S. Medicare price negotiations and the transition of patients with rare diseases from Soliris to the newer drug Ultomiris, analysts indicated.

The business also disclosed the potential for a new fine in China of up to $8 million due to suspected unpaid taxes on imports of the breast cancer drug Enhertu.

This announcement regarding the inquiries in China comes after the company stated in February that it could face a fine of up to $4.5 million related to imports of the cancer drugs Imfinzi and Imjudo.

Nevertheless, core earnings per share, standing at $2.49, exceeded consensus projections of $2.27. China accounted for approximately 12% of overall sales in 2024, while the United States constituted 43%.