AstraZeneca confirmed on Tuesday it has shuttered its neuroscience research division, marking a significant strategic pivot as the pharmaceutical giant redirects resources toward what it describes as "high value" projects in its core therapeutic areas.
During a first-quarter earnings call with investors, Sharon Barr, AstraZeneca's head of biopharmaceuticals research and development, explained that the company has "closed our neuro programs and identified partners for some of them," officially ending the company's neuroscience group operations.
"We cannot be everywhere," CEO Pascal Soriot stated bluntly during the call. The central nervous system is "probably better managed by other companies that have a focus on that."
Strategic Refocus on Core Therapeutic Areas
The decision comes as AstraZeneca aims to concentrate its research efforts on areas that have historically driven its revenue growth. Of the nearly $51 billion in product sales recorded last year, the majority came from medicines targeting cancer, cardiovascular illnesses, and respiratory diseases.
The company has scrapped three neuroscience programs: MEDI1814, an early-stage anti-amyloid beta antibody for Alzheimer's disease; MEDI0618, a Phase II monoclonal antibody for migraine; and a therapy for pain associated with diabetes or osteoarthritis. A company spokesperson indicated the closure would result in "a very small number of roles being placed at risk of redundancy."
This strategic realignment supports AstraZeneca's ambitious goal, set last year, of achieving $80 billion in annual revenue and launching 20 new drugs by 2030. The company's research pipeline currently lists more than 100 programs, including two targeting obesity—arguably the most sought-after indication in current drug development.
"You've heard our excitement about things like weight management, about dyslipidemia, about our very important respiratory portfolio and our growth in immunology," Barr said. "This prioritization helps us to reinvest in the programs that we think are important for AstraZeneca."
Financial Performance and Growth Drivers
In the first quarter of 2025, AstraZeneca reported 10% revenue growth, reaching nearly $13.6 billion, though slightly below analyst expectations of $13.68 billion. On a per-share basis, the company exceeded forecasts, earning $1.88 versus the consensus estimate of $1.10.
Cancer remains the company's strongest performing area, generating more than $5.6 billion in sales across its oncology portfolio. While the type 2 diabetes therapy Farxiga was the top-selling individual product—surging 15% year-on-year to bring in more than $2 billion in Q1—most of AstraZeneca's growth drivers come from its oncology business.
Key oncology performers included:
- Tagrisso (kinase inhibitor): nearly $1.7 billion, up 12% year-on-year
- Imfinzi (PD-1 blocker): $1.26 billion
- Calquence (lymphoma drug): $762 million
- Lynparza (PARP inhibitor): $726 million
For the remainder of the year, AstraZeneca projects total revenue growth in the high single-digit percentage range, with core earnings per share increasing by a low double-digit percentage.
Industry Trend of Neuroscience Exits
AstraZeneca's departure from neuroscience research follows a broader industry trend, as many large pharmaceutical companies have retreated from this challenging area over the past decade. Neuroscience drug development is notoriously difficult, with high failure rates and substantial investment requirements.
Pfizer stopped nervous system drug discovery in early 2018, followed by Amgen a year later. Even Biogen, long considered a pioneer in brain drug research, has diversified into other therapeutic areas perceived as less risky in recent years.
Tom Davidson, global co-head of investment banking at Leerink Partners, recently noted that larger pharmaceutical companies are currently focused on strengthening positions within their established therapeutic areas rather than venturing into new ones.
"You want to be very relevant across modalities, across related call points, in order to have a robust franchise, in order to have a well-positioned business," Davidson said. "In a market like this, it's much easier to build into strength than it is to enter a new area."
U.S. Investment and Manufacturing Strategy
During the earnings call, AstraZeneca executives addressed questions about potential U.S. investments and the impact of possible tariffs. Chief Financial Officer Aradhana Sarin emphasized that any tariff effects would be "manageable," particularly since the majority of the company's U.S.-marketed products are manufactured domestically.
The company made a $3.5 billion investment in its U.S. footprint last November, directed toward an R&D facility in Massachusetts and manufacturing facilities. However, executives indicated that future major infrastructure investments would depend on clinical trial outcomes for key pipeline candidates, including its oral GLP-1 drug for weight management and the breast cancer candidate camizestrant.
"We will then start to plan for success for these molecules and we'll build and manage supply accordingly," Sarin stated.
Unlike several pharmaceutical peers who have recently announced substantial U.S. investments—including Eli Lilly's $27 billion pledge and Johnson & Johnson's $55 billion commitment over four years—AstraZeneca has taken a more measured approach to expanding its U.S. manufacturing presence.
