Company: AZN
Filing Date: 2025-07-29
Form Type: 6-K
Source: 0001104659-25-071432
Chunk: 15

Company: ASTRAZENECA PLC
Filing Date: 2025-07-29
Form: 6-K
Chunk 15
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 Core) in H1 2025 was a result of:

| – | Positive effects from geographic mix |

| – | Negative effects from product mix. The rising contribution of Product Sales with profit sharing arrangements (Lynparza, Enhertu, Tezspire, Koselugo) has a negative impact on Gross Margin because AstraZeneca records Product Sales in certain markets and pays away a share of the gross profits to its collaboration partners. The profit share paid to partners is recorded in AstraZeneca’s Cost of sales line |

| – | Pricing adjustments, for example to sales reimbursed by the Medicare Part D programme in the US, diluted the Gross Margin. |

Variations in Gross Margin performance between periods can continue to be expected due to product seasonality, foreign exchange fluctuations, and other effects. R&D expense The change in R&D expense (Reported and Core) in the period was impacted by:

| – | Positive data read-outs for high-value pipeline opportunities that have ungated late-stage trials |

| – | Investment in platforms, new technology and capabilities to enhance R&D capabilities |

| – | Addition of R&D projects following completion of previously announced business development activity |

SG&A expense

| – | The change in SG&A expense (Reported and Core) in the period was driven primarily by market development activities for launches and to support continued growth in existing brands |

Other operating income and expense

| – | Other operating income in H1 2025 consisted primarily of royalties and an upfront fee on a divestment |

Net finance expense Core Net finance expense decreased 3% (1% at CER) in H1 2025, mainly driven by an adjustment of interest on tax, due to a reduction of tax liabilities relating to prior periods, recognised in the first quarter. Core Net finance expense increased 6% (9% at CER) in Q2 2025, mainly driven by a reduction in short-term deposits.

24

Taxation The effective Reported and Core tax rates for the six months to 30 June 2025 were 18% (H1 2024: 21% and 20% respectively). These tax rates benefited from a reduction of tax liabilities arising from updates to estimates of prior period tax liabilities following settlements with tax authorities in Q1 2025. The cash tax paid for the six months ended 30 June 2025 was $1,549m (H1 2024: $1,337m), representing 24% of