AstraZeneca Shifts Focus, Abandons Neuroscience for Weight Loss and Immunology

AstraZeneca, one of the world's leading pharmaceutical companies, has announced a significant strategic shift, moving away from neuroscience to focus on weight management, immunology, and other core therapeutic areas. This decision, revealed during the company's first-quarter 2025 earnings call, marks a pivotal moment in AstraZeneca's research and development trajectory.

Neuroscience Program Closure

CEO Pascal Soriot explained the rationale behind this move, stating, "There's a lot of things we can't fund and we cannot be everywhere. CNS really is probably better managed by other companies that have a focus on that." This shift is evidenced by the recent discontinuation of two key neuroscience assets: MEDI1814, an early-stage anti-amyloid beta antibody for Alzheimer's disease, and MEDI0618, a Phase II monoclonal antibody for migraine.

Sharon Barr, Executive Vice President of BioPharmaceuticals R&D at AstraZeneca, confirmed, "We have closed our neuro programs and identified partners for some of them. This represents the closure of our neuroscience group at AstraZeneca." The company aims to redirect resources to its "core therapeutic priorities and fund our high-value programs."

Financial Performance and Future Outlook

Despite this strategic shift, AstraZeneca reported strong financial performance in the first quarter of 2025. The company recorded a 10% revenue growth, reaching nearly $13.6 billion. While this fell slightly short of analyst forecasts of $13.68 billion, earnings per share exceeded expectations at $1.88 versus the consensus of $1.10.

Oncology remains AstraZeneca's strongest area, generating more than $5.6 billion in sales across various products. Notable performers include:

• Farxiga (type 2 diabetes therapy): Over $2 billion, up 15% year-on-year
• Tagrisso (kinase inhibitor): Nearly $1.7 billion, up 12% from last year
• Imfinzi (PD-1 blocker for lung cancer): $1.26 billion
• Calquence (lymphoma drug): $762 million
• Lynparza (PARP inhibitor): $726 million

Looking ahead, AstraZeneca projects high single-digit percentage revenue growth for the year, with core earnings per share expected to increase by a low double-digit percentage.

U.S. Investment and Tariff Considerations

In contrast to some of its competitors, AstraZeneca has not committed to substantial new investments in the United States. Chief Financial Officer Aradhana Sarin stated that the potential effects of tariffs on the company's business would be "manageable," given that the majority of its U.S.-sold products are manufactured domestically.

While the company made a $3.5 billion investment in its U.S. footprint last November, including an R&D facility in Massachusetts and two manufacturing facilities, future investments will depend on portfolio developments. Sarin emphasized the need to evaluate the performance of key products, such as their oral GLP-1 drug and breast cancer candidate camizestrant, before making major infrastructure commitments.

This cautious approach stands in contrast to recent announcements from other pharmaceutical giants. Eli Lilly pledged $27 billion for four new plants, while Johnson & Johnson committed $55 billion over the next four years. Novartis, Roche, and Regeneron have also announced significant U.S.-based investments, largely in response to potential tariff threats from President Donald Trump.