AstraZeneca reported stronger-than-expected third-quarter earnings and unveiled a three-year restructuring programme aimed at generating $1.5bn (£1.1bn) in annual savings to reinvest in its drug development pipeline.

The FTSE 100-listed drugmaker said the Reshaping for Sustainable Growth programme would run until the end of 2029, reallocating resources and strengthening capabilities across its existing business and therapy areas. It expects to incur up to $2bn in one-off restructuring costs, with the savings principally reinvested in its pipeline of more than 180 projects and transformative technologies.

AstraZeneca has not yet provided details of where the savings will be made or whether job cuts will be involved.

The initiative supports the company's ambition to generate $80bn in annual revenue by 2030, as it seeks to maintain momentum in drug development following clinical setbacks earlier this year.

The company reported a 7% increase in third-quarter revenue to $16.21bn, while core earnings per share rose 19% at constant exchange rates to $2.79, ahead of market expectations. For the nine months to September, revenue increased 7% to $46.88bn, reported operating profit rose 10% to $11.80bn and underlying earnings climbed 11% to $16.7bn. It also reaffirmed its full-year guidance for mid-to-high single-digit revenue growth and low double-digit growth in core earnings per share.

Net debt increased by $2.46bn to $25.83bn, reflecting investment activity, including a $1.10bn upfront payment to CSPC Pharmaceuticals, alongside working capital movements and higher tax payments.

Separately, AstraZeneca completed a $2bn equity investment in Summit Therapeutics in October, securing approximately 12% of its outstanding common stock, or 10.6% on a fully diluted basis.

CEO Pascal Soriot said: “We have had approvals for four new medicines and reported 12 positive Phase III programme readouts with a collective peak year revenue potential well in excess of ten billion dollars. Our rich series of upcoming readouts in 2027 has a potential of more than twenty billion dollars.

"With multiple potential blockbuster assets in late-stage development and transformative technologies scaling rapidly, we are on track to deliver our 2030 ambition and to sustain growth through the next decade.”

Shares climbed 3.6% in early London trading on Friday.

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