Astrazeneca’s share jumped in early trading on Friday, as investors cheered plans to bolster its drug pipeline.

The pharmaceutical giant’s shares increased 3.1 per cent to £134.50 on Friday morning, as it launched a $2bn (£1.5bn) restructuring programme to boost investment in its drug channel. 

The FTSE 100 company said the three-year programme would shift resources across both its business and therapy areas to deliver $1.5bn in annual savings which will be allocated to the programme.

The plans come as the group looks to grow beyond its headline target of generating $80bn by 2030 and recover from recent trial setbacks as well as the loss of patent protection to three big cancer drugs early next decade.

Shares had weakened earlier in the year following problems with trials, including heart disease drug Wainua, coupled with investor concerns on its potential $400bn blockbuster merger with Bristol Myers Squibb.

The Cambridge-based business has notched a 7.7 per cent share price gain over the last 12 months.

Revenue climbs

Elsewhere, revenue climbed seven per cent in the third quarter to $16.2bn, bolstered by double-digit growth in its oncology, R&I and rare disease arms. 

The company also achieved approval of 47 projects in the first nine months of the year, including for four new medicines.

“The market digested a set of results that showed the company can still grow even as one of its biggest products fades. Farxiga is now facing generic competition in the US, yet total revenue still advanced,” said Adam Vettese, market analyst at Etoro.

“The growth came from the parts of the business that matter most for the next decade- oncology, rare disease and respiratory medicines.”

Gaining ground

Astrazeneca reiterated its full-year forecasts of total revenue growth reaching “mid-to-high single-digit percentage”.

Pascal Soriot, chief executive, also reaffirmed that the company is “on track to deliver our 2030 ambition and sustain growth, driven primarily by “multiple potential blockbuster assets in late-stage development.

The group has continued steady investment in its capabilities over the year, agreeing to invest $2bn in Nasdaq-listed Summit Therapeutics in September in exchange for a 12 per cent stake.

It also signed a drug partnership with California-based AI therapeutics company Insitro earlier this month in a deal with up to $1.5bn.