Shares of AstraZeneca Pharma India climbed 2.98% to ₹6,588.35 during intraday trading on Tuesday following the company’s announcement of the January 2025 launch of Breztri Aerosphere in India. The company had received regulatory approval for the drug on December 2, 2023, from the Drugs Controller General of India (DCGI).
New treatment for COPD patients
In an exchange filing on Monday, AstraZeneca Pharma India confirmed the launch date for Breztri Aerosphere, a triple-combination inhaler aimed at the maintenance treatment of chronic obstructive pulmonary disease (COPD) in adults. The drug is designed to alleviate symptoms and reduce the frequency of exacerbations, providing a comprehensive solution for COPD management.
The introduction of Breztri Aerosphere aligns with AstraZeneca’s strategy to strengthen its respiratory portfolio in India, a country witnessing a growing prevalence of COPD due to air pollution and smoking-related health issues.
Strong Q2FY25 financial performance
The announcement comes on the back of AstraZeneca Pharma’s robust performance in the second quarter of the 2024-25 financial year (Q2FY25). The company reported a 31% year-on-year growth in revenue from operations, which reached ₹408 crore for the quarter. Revenue for the first half of FY25 stood at ₹795.5 crore, reflecting strong contributions from the oncology, biopharmaceuticals, and rare disease segments.
Despite the revenue growth, profit after tax (PAT) in Q2FY25 stood at ₹38.4 crore, marking a recovery from the net loss of ₹11.8 crore in the previous quarter but a 27% decline year-on-year compared to ₹52 crore in Q2FY24. Profit before exceptional items and tax for Q2FY25 was reported at ₹51 crore.
Stock performance overview
AstraZeneca Pharma’s stock has demonstrated significant growth over the past year, outperforming the broader market. The company’s shares have risen 16% year to date and 40% in the last one year, compared to the 8.2% year-to-date rise and 18.8% one-year gain of the BSE Sensex.
At the time of reporting, AstraZeneca Pharma shares pared some intraday gains, trading at ₹6,557.75, up 2.50%, while the BSE Sensex was down 1.13% at 78,216.20. The company’s current market capitalisation stands at ₹16,345 crore, with shares trading at a price-to-earnings (P/E) ratio of 195.24 and an earnings per share (EPS) of ₹32.77.
Future prospects and market implications
The launch of Breztri Aerosphere is poised to enhance AstraZeneca’s footprint in India’s growing pharmaceutical market, particularly in the respiratory segment. COPD, a major public health concern in the country, represents a lucrative market for innovative therapies like Breztri.
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The company’s financial results for Q2FY25 highlight its ability to leverage growth in diverse therapeutic areas, despite facing challenges in profit margins. Its oncology and rare disease segments, in particular, have driven revenue growth, positioning AstraZeneca as a leader in these high-demand areas.
The stock’s strong performance over the past year reflects investor confidence in AstraZeneca’s strategic initiatives and growth potential. However, its high P/E ratio indicates premium valuation, suggesting that future stock performance may hinge on continued earnings growth and successful product launches like Breztri Aerosphere.
Industry context
India’s pharmaceutical industry has been expanding rapidly, driven by increasing healthcare awareness, rising incomes, and higher incidences of chronic diseases. The introduction of advanced treatments like Breztri Aerosphere is critical to addressing unmet medical needs in the respiratory segment.
AstraZeneca’s commitment to bringing innovative therapies to the Indian market positions it as a key player in meeting the healthcare demands of the country’s growing population. Breztri’s success in India could further bolster the company’s global reputation and financial performance.
As the January 2025 launch approaches, market participants will closely monitor the commercial impact of Breztri Aerosphere and its contribution to AstraZeneca Pharma India’s growth trajectory.
