AstraZeneca PLC (AZN.L) | Investment Case

1. Company Snapshot

1.a. Company Description

AstraZeneca PLC, a biopharmaceutical company, focuses on the discovery, development, manufacturing, and commercialization of prescription medicines.Its marketed products include Calquence, Enhertu, Faslodex, Imfinzi, Iressa, Koselugo, Lumoxiti, Lynparza, Orpathys, Tagrisso, and Zoladex for oncology; Brilinta/Brilique, Bydureon/Byetta, BCise, Byetta, Crestor, Evrenzo, Farxiga/Forxiga, Komboglyze/Kombiglyze XR, Lokelma, Onglyza, Qtern, and Xigduo/Xigduo XR for cardiovascular, renal, and metabolism diseases; Bevespi Aerosphere, Breztri Aerosphere, Daliresp/Daxas, Duaklir Genuair, Fasenra, Pulmicort, Saphnelo, Symbicort, and Tudorza/Eklira/Bretaris for respiratory and immunology; and Andexxa/Ondexxya, Kanuma, Soliris, Strensiq, and Ultomiris for rare diseases.The company's marketed products also comprise Synagis for respiratory syncytial virus; Fluenz Tetra/FluMist Quadrivalent for Influenza; Seroquel IR/Seroquel XR for schizophrenia bipolar disease; Nexium, and Losec/Prilosec for gastroenterology; and Vaxzevria and Evusheld for covid-19.

The company serves primary care and specialty care physicians through distributors and local representative offices in the United Kingdom, rest of Europe, the Americas, Asia, Africa, and Australasia.It has a collaboration agreement with Regeneron Pharmaceuticals, Inc.to research, develop, and commercialize small molecule medicines for obesity; Neurimmune AG to develop and commercialize NI006; Ionis Pharmaceuticals, Inc.

to develop eplontersen, a liver-targeted antisense therapy in Phase III development for the treatment of transthyretin amyloidosis; Proteros Biostructures GmbH to jointly discover novel small molecules for the treatment of hematological cancers; Sierra Oncology, Inc.to develop and commercialize AZD5153.The company was formerly known as Zeneca Group PLC and changed its name to AstraZeneca PLC in April 1999.

AstraZeneca PLC was incorporated in 1992 and is headquartered in Cambridge, the United Kingdom.

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1.b. Last Insights on AZN

AstraZeneca's recent momentum is driven by several positive developments. The company's lung cancer treatment, Tagrisso, received a boost with positive clinical trial results, showing improved overall survival for patients. Additionally, AstraZeneca's ENHERTU marketing authorization application was validated by the European Medicines Agency. Goldman Sachs maintains a bullish stance, citing growth potential and a solid market position, with a $97 price target. The company's pipeline momentum and stronger revenue growth forecasts have also led to increased fair value estimates.

1.c. Company Highlights

Last Price	13592
Change Percentage	0.58%
Open	13560
Previous Close	13514
Market Cap ( Millions)	210712
Volume	1411221
Year High	14206
Year Low	9573.5
M A 50	12881.72
M A 200	11453.09

FCF Yield	3.11%
Dividend Yield	1.54%
ROE	20.20%
Debt / Equity	73.43%
Net Debt / EBIDTA	136.84%
Price To Book	6.28
Price Earnings Ratio	33.24
Price To FCF	32.19
Price To sales	4.9
EV / EBITDA	16.28

2. AstraZeneca's Strong Q3 2025 Earnings: Growth Momentum Continues

AstraZeneca reported a robust financial performance in the first nine months of 2025, with total revenue growing by 11% to $43.4 billion, driven by continued demand for its innovative medicines. The company's core EPS increased by 15% to $7.04, reflecting its strong operational leverage. The core operating margin was 33.3%, with the company remaining on track to achieve its 2026 margin target. The reported EPS of $1.82 was in line with analyst estimates.

Publication Date: Nov -07

                                    📋 Highlights
                                    Revenue Growth::
                                                Total revenue increased by 11% year-to-date (YTD), with product sales up 9% and alliance revenue surging 41%.
Core EPS Expansion::
                                                Core earnings per share (EPS) grew 15% to $7.04, driven by strong operational performance and demand for key therapies.
Oncology Dominance::
                                                Oncology revenue reached $18.6 billion YTD (+16%), with double-digit growth in the U.S. (19%) and emerging markets.
Pipeline Catalysts::
                                                Four Phase III trial readouts (e.g., DESTINY-Breast05, TROPION-Breast02) and 31 regulatory approvals highlight pipeline momentum.
Margin Progress::
                                                Core operating margin hit 33.3%, aligning with 2026 mid-30s target, despite R&D expenses rising 16% due to high-priority investments.

                                

Revenue Growth Across Therapy Areas

AstraZeneca's revenue growth was broad-based across therapy areas, with oncology growing by 16% to $18.6 billion, driven by strong demand for its medicines in the U.S., Europe, and emerging markets. The Biopharmaceuticals and Rare Disease franchises also reported growth of 8% and 6%, respectively. The company's pipeline continues to deliver, with four additional positive Phase III study readouts announced in 2025, including DESTINY-Breast05 and DESTINY-Breast11.

Pipeline Updates and Future Growth Prospects

AstraZeneca's pipeline is rich with potential, with several late-stage assets showing promising results. Baxdrostat, an aldosterone synthase inhibitor, demonstrated significant reductions in blood pressure in the BaxHTN trial, and the company is advancing its regulatory filings and clinical development program. The company's rare disease portfolio is also advancing, with recent approvals for Koselugo and Ultomiris. Analysts estimate revenue growth of 6.3% next year, indicating a continued strong growth trajectory.

Valuation Metrics

AstraZeneca's current valuation metrics indicate a reasonable price for the company's growth prospects. The P/E Ratio is 30.72, and the P/S Ratio is 4.53, suggesting that the company's growth is partially priced in. However, the EV/EBITDA ratio of 15.15 and the ROE of 20.2% indicate a strong operational performance. The company's dividend yield is 1.64%, providing a relatively stable return for investors.

Investment Implications

AstraZeneca's strong financial performance, coupled with its robust pipeline and growth prospects, make it an attractive investment opportunity. The company's commitment to innovation and its focus on addressing significant unmet medical needs are likely to drive future growth. As the company continues to advance its pipeline and deliver on its growth prospects, investors may expect a continued strong performance from the stock.