The company has tied up with Eccogene, a Chinese biotech firm, for a new experimental weight loss drug. The weight loss market is currently dominated by Eli Lilly and Novo Nordisk.
Pharmaceutical giant AstraZeneca earlier on Wednesday hit a valuation of £200.3bn (€233.14bn) making it the only current UK-listed company to reach such a valuation. Its success reflects the ongoing success of its cancer drugs portfolio.
AstraZeneca has developed a robust diabetes and cancer drug portfolio over the past few years, with several plans for new and more advanced cancer medications to be launched as well. One of the company’s key drugs, Enhertu is used to treat breast cancer as well as other types of cancer.
The company’s shares have climbed more than 19% since the start of the year, boosted by chief executive officer (CEO) Pascal Soriot stated ambition for AstraZeneca to achieve a yearly revenue of $80bn (€72.55bn) by 2030.
This followed a change in strategy, concentrating on increasing research and development activities, after a failed takeover bid in 2014 by competitor Pfizer.
AstraZeneca in 2023 exceeded its long-term revenue goals, by seeing sales worth approximately $45.8bn (€41.55bn). It also revealed that it was planning to launch 20 new medications by 2030.
AstraZeneca looks to strengthen weight-loss market position
Over the past few months, AstraZeneca has been making strides in the weight loss drug market, which is currently dominated by players such as Eli Lilly and Novo Nordisk. The company has tied up with Eccogene, a Chinese biotech firm, for a new experimental weight loss drug, in a deal worth approximately £1.6bn (€1.86bn).
Soriot said, in the company’s half year and second quarter 2024 earnings press report: “Already this year, we have announced five positive, potentially practice-changing Phase III studies that are anticipated to meaningfully contribute to our growth.
“In the year to date, we have continued to make encouraging progress with several disruptive technologies, including antibody drug conjugates, bispecifics, cell and gene therapies, radioconjugates and weight management medicines, all of which have the potential to drive our growth beyond 2030.”
Not all is smooth sailing for the pharmaceutical company, however. AstraZeneca’s Merseyside vaccine production plant, which has already taken up £450m (€523.94m) of investment, could potentially be in jeopardy.
This follows the UK Treasury’s consideration about cutting the amount of state aid previously earmarked for the project, from £65m (€75.69m) to £40m (€46.58m).
If so, AstraZeneca has hinted that it could potentially move the plant to France , in what could be a blow to the UK pharmaceutical industry.
