AstraZeneca Says U.S. Tariffs Manageable Despite Q1 Revenue Miss and New China Fine

AstraZeneca (NASDAQ: AZN) has reassured investors that potential U.S. pharmaceutical import tariffs will have a limited impact on its financial outlook, even as the company missed first-quarter revenue estimates and faces new regulatory scrutiny in China.

The Anglo-Swedish pharmaceutical giant reported Q1 revenue of $13.6 billion, falling short of analysts’ expectations of $13.8 billion. Despite the revenue miss, the company maintained its 2025 financial guidance, signaling confidence in its supply chain resilience and strategic manufacturing shifts.

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🔍 Key Takeaways:

• Q1 revenue: $13.6 billion (vs. $13.8 billion expected)
• Core EPS: $2.49 (vs. $2.27 expected)
• U.S. tariffs: Limited impact expected, guidance for 2025 reaffirmed
• China fine: Potential new penalty of up to $8 million for unpaid taxes
• AstraZeneca shares: Dropped as much as 5.4%, later trimmed losses to -3.2%

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🇺🇸 U.S. Tariff Concerns ‘Manageable’

Speaking to reporters, CEO Pascal Soriot addressed concerns around the Trump administration’s proposed tariffs on pharmaceuticals, stating:

“If tariffs were implemented in the range we’ve seen recently in other industries on medicines imported from Europe to the U.S., we would remain within the guidance range we indicated for 2025.”

Soriot noted that most of AstraZeneca’s U.S. sales are supported by manufacturing in Europe or within the U.S., reducing exposure to tariff-related risks. The company is also increasing its domestic U.S. production capacity to further buffer against trade uncertainty.

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🇨🇳 Another Regulatory Setback in China

AstraZeneca disclosed it may face a new fine of up to $8 million from Chinese regulators over suspected unpaid taxes related to imports of the breast cancer treatment Enhertu. This follows a previous disclosure in February of a potential $4.5 million fine tied to its cancer drugs Imfinzi and Imjudo.

China remains a key market for AstraZeneca, accounting for 12% of total revenue in 2024. However, the U.S. remains the largest, contributing 43% of total sales.

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💊 Oncology Sales and Market Pressures

AstraZeneca’s oncology portfolio—including major drugs like Tagrisso, Lynparza, and Imfinzi—underperformed in the quarter. Analysts attribute the decline to:

• Disruptions from U.S. Medicare drug price negotiations
• Transition of rare disease patients from Soliris to Ultomiris

Despite the setbacks, the company’s core earnings per share (EPS) came in at $2.49, beating analyst consensus of $2.27, thanks to improved cost management and operational efficiency.

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📉 Stock Market Reaction

Shares of AstraZeneca dropped as much as 5.4% in early trading following the earnings release but later recovered slightly to trade 3.2% lower at around £102 per share. The stock underperformed the FTSE 100 index, which was up 0.2% at the same time.

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