AstraZeneca's $80B Sales Strategy Relies on Cancer Drug Growth

AstraZeneca is strategically aiming to achieve $80 billion in sales by 2030, with a significant contribution expected from approximately a dozen cancer drugs poised to become blockbuster hits. This ambitious plan, detailed in a recent investor presentation, reveals that several of these drugs will pioneer new technologies not previously utilized by AstraZeneca, positioning them directly against competitors' offerings.

A leading performer is the lung cancer treatment Tagrisso, which has already surpassed $5 billion in annual sales. Imfinzi, another key drug, is nearing the $5 billion mark as well. The company’s focus is to develop medications that replace traditional toxic chemotherapies and innovate within the field of checkpoint inhibitors, a subset of immunotherapy.

Central to this strategy is AstraZeneca's expanding portfolio of antibody-drug conjugates (ADCs). These sophisticated treatments combine the targeting capabilities of antibodies with the cell-killing power of chemotherapies, which could significantly reduce the need for conventional chemotherapy. AstraZeneca has a robust pipeline of these ADCs, which will be crucial in its oncology strategy.

Over the past decade, AstraZeneca has transformed its focus, moving away from mental health, respiratory, and cholesterol treatments to prioritize oncology. Although the company entered the immunotherapy market later than its competitors, it has gained traction with targeted therapies and ADCs. Imfinzi, its flagship immunotherapy, was the fifth to market in the U.S. and significantly trails Merck’s Keytruda in sales.

Aiming to bolster its standing in immunotherapy, AstraZeneca is developing bispecific antibodies that target the PD-1 pathway. Rilvegostomig, one such antibody, also targets TIGIT, a challenging pathway even in combination with existing PD-1 drugs. Another bispecific antibody, volrustomig, targets both PD-1 and CTLA-4, mimicking a combination therapy involving Imfinzi and another drug, Imjudo. AZD0486, a third bispecific antibody, targets proteins on immune and diseased cells to treat lymphoma, paralleling Amgen's Blincyto.

AstraZeneca is also venturing into cell therapy, a field dominated by Novartis, Gilead, Bristol Myers Squibb, and several biotech companies. The company’s pioneering effort is a dual-acting therapy targeting a protein active in multiple myeloma cells and CD19. AstraZeneca asserts that it can produce this therapy within days, compared to the weeks required for current CAR-T therapies.

In breast cancer treatment, AstraZeneca is testing a novel hormone therapy in both post-surgical and inoperable scenarios, sometimes in combination with targeted therapies. As part of its breast cancer strategy, AstraZeneca is developing saruparib, a PARP inhibitor that could potentially replace Lynparza, a drug generating $2 billion annually.

ADCs will continue to be a cornerstone of AstraZeneca’s cancer drug strategy. Enhertu, a breast cancer drug, is already on the market, and another ADC, datopotamab deruxtecan, is currently under regulatory review. Analyst Peter Welford predicts that datopotamab deruxtecan could generate nearly $6 billion in sales by 2030. AstraZeneca’s pipeline includes six other clinical-stage ADCs, which could be applicable in 17 different cancer types.

Looking beyond 2030, AstraZeneca plans to incorporate radiopharmaceuticals into its portfolio. In March, the company invested $2.4 billion to acquire Fusion Pharmaceuticals, which is developing a prostate cancer drug currently in Phase 2 trials. This acquisition highlights AstraZeneca's commitment to expanding its innovative cancer treatment arsenal.