Astrazeneca plc - ADR

Strong H1 momentum + upgraded confidence in 2030 ambition (good) - Total revenue +6% in H1 2026 (core underlying strength highlighted as +11% excluding Farxiga & Brilinta generics). - Core EPS +11% in H1, in line with full-year guidance. - Oncology + Rare Disease delivered double-digit growth, while Respiratory/Immunology helped mitigate losses from CVRM (Farxiga/Brilinta) exclusivity. - Pipeline delivery is active: 6 key Phase III readouts in H1, including 3 new molecular entities (NMEs); 30 major market approvals, including first approvals for 2 NMEs (Etcamah in HR+ breast cancer; Baxfendy in hypertension). Company reiterated goal to reach 20 approved NMEs by 2030 (now at 11).

Financial outlook reiterated: mid-to-high single-digit revenue growth + low double-digit EPS growth (forecast) - Full-year guidance reiterated: total revenue expected to grow mid- to high single digits (CER) and core EPS low double digits (CER). - Gross margin: 83% core gross margin in H1; management expects lower gross margin in H2 due to seasonal demand in lower-margin products (e.g., FluMist, Beyfortus), but stable to slightly higher vs 2025 for the full year. - R&D intensity: 23% of revenue in H1, and full-year R&D expected upper end of low 20s % range (ongoing heavy pipeline investment). - CapEx: $1.5B in H1; expects ~+1/3 increase in 2026, including new ADC manufacturing capacity in Singapore.

Big “good news” oncology catalysts (opportunities) - Strong oncology growth in H1: Oncology revenue +15% to $14.1B. - Key readouts: - VOLGA (Imfinzi/Enfortumab +/− Imjudo) in muscle-invasive bladder cancer for cisplatin-ineligible: statistically significant and clinically meaningful improvements in event-free survival and overall survival; Imjudo arm shows EFS benefit with favorable OS trend. - CLARITY-Gastric01 (sone-ve / Claudin 18.2 ADC): reported overall survival benefit in 2nd-line plus gastric cancer, including patients with as low as 25% Claudin 18.2 expression; management calls it a landmark for C18.2 ADCs and for wholly owned ADC portfolio. Also reinforces confidence in CLARITY-Gastric02 (first-line strategy). - Commercial opportunities: - Tagrisso leadership remains strong; company is extending the franchise with combination trials and new in-licensing (Zegfrovy) for EGFR exon 20 insertions, signaling continued intent to lead the space.