By Helena Smolak

AstraZeneca posted increased core earnings per share and sales for the first quarter but warned of mounting legal challenges in China.

The British pharmaceutical giant said Tuesday that its core earnings per share--the company's preferred metric, which strips out exceptional and other one-off items-- increased to $2.49 from $2.06 the prior-year period.

Total revenue rose 10% at constant currency to $13.59 billion. In its oncology segment--the drugmaker's top business--revenue grew 42% to $5.64 billion, accelerated by demand for lung cancer drug Tagrisso and its treatment Imfinzi. Revenue in China rose 3% to $1.805 billion.

Analysts expected core earnings per share at $2.27 on sales of $13.80 billion, according to a company-compiled consensus.

AstraZeneca stuck to its 2025 financial targets and said it was committed to investing and growing in the U.S. as the industry faces President Trump's tariff threats. AstraZeneca last year pledged $3.5 billion into U.S. research and development as well as production by the end of 2026.

The drugmaker also said it could face a fine of up to $8 million if it is found liable in a probe over alleged illegal drug imports in China.

AstraZeneca said that, to its knowledge, the matter relates to imports of its breast cancer drug Enhertu. The company said it received an official opinion from authorities from the city of Shenzhen alleging around $1.6 million in unpaid taxes, with a potential penalty of one to five times.

AstraZeneca relies more on China than most of its peers. The company generated nearly 12% of its revenue last year in the country, an exposure that came under investors' scrutiny after Chinese authorities started to probe the drugmaker and arrested its China president.

The company disclosed in February that it might be charged up to $4.5 million over alleged illegal imports of cancer drugs Imfinzi, Imjudo, and potentially Enhertu.

AstraZeneca also said Chinese authorities had found no evidence of illegal gain by the company in a separate case concerning alleged personal information infringement.

The company said it is confident to reach its $80 billion revenue mark by 2030.

Write to Helena Smolak at helena.smolak@wsj.com

(END) Dow Jones Newswires

In AstraZeneca's oncology segment revenue grew 13% to $5.64 billion. "AstraZeneca Sales, Earnings Rise; Warns of Mounting Legal Challenges in China -- Update," at 0757 GMT, incorrectly said oncology revenue grew 42%.

(END) Dow Jones Newswires

April 29, 2025 05:59 ET (09:59 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.