AstraZeneca (LSE:AZN) TAGRISSO Shows Clinically Meaningful Survival Improvement In Lung Cancer Study

AstraZeneca (LSE:AZN) recently announced positive developments regarding TAGRISSO®'s survival benefits in treating non-small cell lung cancer, reinforcing its position as a standard-care medication. During the last quarter, the company's stock experienced a 2% rise, aligning closely with broader market trends. Significant developments, such as the approval of Baxdrostat for hypertension and Imfinzi for bladder cancer, alongside robust financial results with increased sales and a higher dividend, likely contributed to this movement. These events would have generally supported investor sentiment amidst a flourishing market backdrop, with major indexes achieving new highs and positive earnings reports widespread.

AstraZeneca has 3 weaknesses we think you should know about.

Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.

The recent positive results for TAGRISSO® could bolster AstraZeneca's market position, potentially enhancing long-term revenue and earnings forecasts. These developments, alongside new approvals for Baxdrostat and Imfinzi, may signal an uptick in future growth prospects, strengthening AstraZeneca's competitive position. Over the past five years, AstraZeneca's total return was 33.63%, showcasing notable outperformance in comparison to the recent 1-year period where it underperformed the UK Pharmaceuticals industry, which experienced a 11.7% decline.

Looking ahead, the introduction of new products and expansions into emerging markets, such as the 17% revenue growth outside of China, supports the narrative of sustained growth. However, challenges like regulatory changes and biosimilar competition could affect pricing power and market dynamics. With a current share price of £102.94, AstraZeneca trades at a significant discount to the consensus analyst price target of £137.45, which represents room for potential stock price appreciation.

The valuation report we've compiled suggests that AstraZeneca's current price could be quite moderate.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com