UK Pharma Giants AstraZeneca and GSK Beat Q1 Expectations Amid US Pricing Concerns

The United Kingdom's leading pharmaceutical firms, AstraZeneca and GSK, delivered stronger-than-expected first-quarter earnings on Wednesday, signaling resilience in the face of global pricing pressures. The results come at a critical juncture for the European pharmaceutical sector. Industry leaders, including CEOs from Novartis and Roche, have warned that the U.S. administration's 'most-favored-nation' (MFN) drug pricing policy could stifle innovation and reduce the number of new medicines launched in Europe by tying U.S. prices to lower international benchmarks. Novartis CEO Vas Narasimhan noted that while the reality of MFN has not yet materialized, its impact is expected within the next 18 months. AstraZeneca reported core earnings per share of $2.58, surpassing the $2.53 estimate. Revenue grew 8% year-on-year to $15.3 billion, beating the $14.9 billion forecast. CEO Pascal Soriot highlighted a 'catalyst-rich' pipeline, noting positive late-stage trial results for a liver cancer treatment involving Imfinzi and a successful readout for an experimental lung disease medication. Soriot reaffirmed the company's goal of reaching $80 billion in annual revenue by 2030. GSK also outperformed expectations, posting a core EPS of £0.47 ($0.63) against an expected £0.43. The company's revenue reached £7.63 billion ($10.3 billion), representing a 5% year-on-year increase and aligning with analyst projections. Both stocks have significantly outperformed their benchmarks over the last year, with GSK rising 42% and AstraZeneca gaining 30%, compared to 15% for the Stoxx 600 and 22% for the FTSE 100.