Astrazeneca Plc CEO Pascal Soriot warned that trade tariffs are not the best way to manage drugmakers, and drugmakers are calling for no additional taxation.
“We actually think that attracting a better motivation to invest in manufacturing and R&D is to create a huge tax policy that inspires companies to invest in the country,” Soriot said on Bloomberg TV on Tuesday.
AstraZeneca believes that any impact of taxation on the company will be short-lived given its manufacturing operations in the United States. Soriot said the industry is still calling on the Trump administration to not charge for imported drugs after excluding it in a recent announcement.
The drugmaker was more profitable in the first quarter, which still disappointed investors due to weak expected sales of key cancer drugs. The company’s shares fell 4.7% in early trading in London and fell about 16% in the past year.
Astra said it is suspending late-stage trials of its TRUQAP prostate cancer treatment based on recommendations from the independent data monitoring committee. TRUQAP has been approved for the treatment of breast cancer.
Earnings per share (excluding certain items) were $2.49, up from $2.26 estimated by analysts surveyed by Bloomberg.
Bloomberg intelligence analyst John Murphy pointed out that weaknesses in cancer and rare viruses are potential sources of concern, and Bloomberg intelligence analyst John Murphy said sales of major cancer drugs were lower than expected. Still, its diabetes and heart disease drug FARXIGA sales are still 6% higher than expected, while its newer cancer medicine revenue is leading.
The British drugmaker confirmed the year’s guidance and expressed his commitment to investing and growing in the United States.
By the end of 2026, Astra had announced $3.5 billion in investment in its U.S. business. Cash will be used in R&D and manufacturing.
Astra also attempted to move from a sabotage investigation to current and former Chinese employees, which put the country’s drugmaker president in a difficult situation. The company said it received an evaluation from Shenzhen Customs Bureau in April, with suspected unpaid import tax of $1.6 million, which Astra said may be related to Enhertu.
“If AstraZeneca’s fine is found, one to five times the fine for unpaid import taxes could be imposed,” the company said.
Astra’s earlier estimates, analysts have previously estimated that the unpaid import tax on two other cancer drugs from imfinzi and imjudo is only $4.5 million.
Jefferies analyst Benjamin Jackson said in a note that the latest updates about China could be welcomed by investors.
This year, Astra announced a $2.5 billion research center in Beijing as it attempts to capitalize on the booming benefits of the scientific power that emerges in China. The project shows that despite investigations, strong partnerships have been established with the government.
The drug maker has obtained several positive readings from potential blockbuster drugs this year, including data from its experimental cholesterol drug, which significantly lowered “bad” cholesterol in an interim trial. This could be part of a powerful combination of drugs that target weight loss and related diseases.
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