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• Total Revenue Growth: 10% in Q1 2025.

• Core Operating Profit Growth: 12% increase.

• Core EPS Growth: 21% increase, benefiting from a lower tax rate.

• Gross Margin: 84% in Q1 2025.

• Core R&D Costs: Increased by 16%, representing 23% of total revenue.

• Core SG&A Costs: Increased by 4%.

• Core Operating Profit Margin: 35%.

• Core Tax Rate: 16% in Q1 2025.

• Cash Inflows from Operating Activities: $3.7 billion.

• CapEx: Approximately $500 million, expected to increase by 50% this year.

• Net Debt: Increased by $1.5 billion to $26.1 billion.

• Oncology Revenue Growth: 13% to $5.6 billion in Q1 2025.

• Biopharmaceuticals Revenue Growth: 12% to $5.6 billion in Q1 2025.

• Rare Disease Revenue: $2 billion, stable year-on-year.

• Warning! GuruFocus has detected 3 Warning Signs with FNNNF.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• AstraZeneca PLC (NASDAQ:AZN) reported a strong start to 2025 with a 10% increase in total revenue, driven by demand for innovative medicines.

• Core operating profit increased by 12% and core EPS rose by 21%, reflecting effective cost management and operating leverage.

• The company secured 13 approvals in key regions, showcasing the global impact of its diverse portfolio.

• AstraZeneca PLC (NASDAQ:AZN) announced five positive Phase III results, including two NMEs, indicating strong pipeline delivery.

• The company is on track to deliver at least 20 NMEs by 2030, with nine novel medicines already approved.

Negative Points

• AstraZeneca PLC (NASDAQ:AZN) faces anticipated headwinds, including Medicare Part D redesign in the US, which could impact revenue.

• The company expects a decline in total revenue gross margin by 60 to 70 basis points in 2025 due to various factors, including SOLIRIS biosimilar competition.

• There is a potential impact from VBP inclusion in China, which could affect pricing and revenue for certain products.

• AstraZeneca PLC (NASDAQ:AZN) anticipates a lower gross margin in the second half of the year due to seasonal patterns and other factors.

• The company is facing increased competition in the rare disease segment, which could impact growth in this area.

Q & A Highlights

Q: How should we think about the impact of the Medicare Part D redesign in the US as we move through the year? Was it mostly Q1 weighted or do you expect further impact from here? A: David Fredrickson, Executive Vice President - Oncology Business Unit: The Part D redesign is a rebasing that happened at the beginning of the year. The catastrophic coverage is triggered on the first fill within our oral oncology products, so it will not grow from here. We saw a 20% increase in volumes for Tagrisso in the US, driven by ongoing launches and reduced free good utilization, offsetting the gross to net impact from Part D redesign. We expect continued revenue growth throughout 2025.