British pharmaceutical giant AstraZeneca on Thursday said net profit jumped 18 percent in 2024, boosted by a strong performance from its cancer medicine sales and despite the group’s troubles in China.
The company flagged that, as part of an investigation in China, it could be fined up to $4.5 million over suspected unpaid import taxes of $900,000 on certain cancer therapies.
Profit after tax rose to $7 billion last year, up from $6 billion in 2023, the company said in an earnings statement, noting a sharp increase in sales of cancer medicines.
It reported that total revenue increased to $54 billion, compared to the previous year, and expects a strong increase in sales in 2025.
“Our company delivered a very strong performance in 2024,” said chief executive Pascal Soriot, noting “increasing demand for our medicines in all key regions”.
AstraZeneca’s share price rose five percent in morning deals on London’s top-tier FTSE 100 index, which was trading higher overall.
During the fourth quarter of 2024, sales dipped in China, where the group’s former China boss, Leon Wang, was detained last year along with other employees over investigations into potential illegal data collection and drug imports.
Wang, who is on extended leave from the company, was replaced by Iskra Reic, who took over as international executive vice president in December.
“AstraZeneca’s full year results have shown that when it comes to high-octane growth in the pharmaceutical sector, obesity drugs aren’t the only game in town,” said Derren Nathan, head of equity research at Hargreaves Lansdown.
But he added that in recent months, “investigations by the Chinese authorities on key staff members have been weighing heavy on the stock price.”
Investors “want more clarity on the likelihood of wider action against the company in China,” he said.