By Pushkala Aripaka and Ankur Banerjee
(Reuters) - AstraZeneca Plc (L:AZN) raised its product sales forecast for 2019 on Thursday after second-quarter results beat analysts' expectations, driven by strong sales from cancer medicines and emerging markets including China.
The British drugmaker's shares rose more than 5% to hit a record high of 6,690 pence in early trade, bringing gains for the year so far to nearly 13% as Chief Executive Officer Pascal Soirot's turnaround plan gained traction.
Sales from its oncology unit soared 57% to $2.17 billion (£1.74 billion), accounting for 38% of total product sales, with revenue from the company's top-seller - lung cancer drug Tagrisso - nearly doubling to $784 million.
"The momentum generated last year continued into the first half, consolidating AstraZeneca's return to growth based on the strength of our new medicines," Soirot said in a statement.
AstraZeneca's focus on China has resulted in explosive growth, with sales more than doubling since 2012 on the back of partnerships with local players and a softening of the regulatory environment for pharmaceutical firms.
Chinese sales rose 44% in the three-month period to $1.17 billion, accounting for more than half of its sales in the developing world.
(For an interactive graphic on AstraZeneca's oncology and China growth, click here https://tmsnrt.rs/2y80M5t)
The drugmaker, however, has warned that growth may not be sustainable and could slow to between 15% and 20%.
AstraZeneca said it now expects full-year product sales to increase by a low double-digit percentage, compared to a previous forecast of high single-digit percentage growth but it maintained its forecast for 2019 core earnings.
Quarterly sales rose 19% to $5.72 billion at constant currency, the company's fourth consecutive quarter of product sales growth.
Core earnings were 73 cents per share, beating analysts' average expectation of 61 cents per share, according to a company provided consensus.
Analysts had expected product sales of $5.45 billion.
Like other players, AstraZeneca has been one of the focal points for concern over supplies of drugs if Britain leaves the European Union without a withdrawal deal later this year.
The company reiterated on Thursday that it was prepared for the breakup, even if it was a no-deal exit.