AstraZeneca shares topped the FTSE 100 leaderboard after the pharmaceutical giant reported market-beating earnings for the latest quarter and said it expects sales and earnings growth this year, although problems in China continue to weigh on the company. Here is a selection of analysts comments:

AstraZeneca's China Woes Seem Manageable

1101 GMT - AstraZeneca's China troubles seem manageable, Quilter Cheviot healthcare analyst Sheena Berry says in a note. The British pharma company facing potential charges from an import tax allegation against some of its employees in China creates a slight overhang but entails an amount that it can handle, the analyst says. "China has proven to be an overhang on the stock following the fraud investigations of several individuals, and questions remain on exactly what impact this might have on operations in China," she says. Shares are up 5.2% at 117.02 pounds. (helena.smolak@wsj.com)

AstraZeneca's Outlook Makes Midterm Target Look Achievable

1118 GMT - AstraZeneca expects earnings and sales to grow this year, which makes its midterm target seem achievable, Interactive Investor analyst Richard Hunter says. High demand for the British pharma company's cancer drugs lifted sales in the fourth quarter while seven key late-stage clinical results this year set the company on the right footing to reach its midterm sales target, the analyst says. "The 2030 aim of $80 billion of revenues looks ambitious yet increasingly achievable, with AstraZeneca still confident of hitting the target given the strength of its late and mid-stage pipelines," he says in a market comment. Shares are up 5.1% at 116.92 pounds. (helena.smolak@wsj.com)

AstraZeneca's Sales Beat, Pipeline Outshines Margin Miss

1122 GMT - AstraZeneca's sales beat and key catalysts for 2025 outshine its core operating profit miss, Barclays analysts says in a note. The British pharma giant's oncology drugs beat sales expectations, driven by lung-cancer drug Tagrisso and breast-cancer treatment Lynparza, Barclays says. However, its core operating profit margin missed company-compiled consensus by 30%, they say. "We see AstraZeneca as having the strongest catalyst path in 2025 of any company in our coverage," the analysts say. Shares are up 5.1% at 116.92 pounds. (helena.smolak@wsj.com)

AstraZeneca's Increased R&D Spend Is a Positive

1324 GMT - AstraZeneca's higher spending on research and development is a positive and crucial for it to build out its pipeline, UBS analysts say in a note. The British pharma giant generated higher-than-expected collaboration income, which it reinvested in R&D spending that grew 23% in the fourth quarter, the analysts say. "This is in line with UBS thesis that AstraZeneca needs to increase R&D spend to prosecute the rich pipeline," UBS says. This year is key for the drugmaker, with seven expected late-stage trial results due, they say. Shares are up 5.8% at 117.70 pounds. (helena.smolak@wsj.com)

U.K. Health System Needs to Improve Investment Environment, AstraZeneca CEO Says

1518 GMT - The health system in the U.K. needs to develop a more attractive investment environment, AstraZeneca's chief executive officer Pascal Soriot says in a media call. High taxes and access issues have created problems for the entire industry, he says. The British pharma giant last week withdrew plans to invest in a vaccine plant in Liverpool after what it called a cut in government support. Shares are up 5.8% at 117.70 pounds. (helena.smolak@wsj.com)

(END) Dow Jones Newswires

February 06, 2025 10:47 ET (15:47 GMT)

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