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Investing.com - Bernstein downgraded Astellas Pharma Inc (TYO:4503) (OTC:ALPMY) from Outperform to Market Perform with a price target of JPY1,600.00 on Tuesday.
The downgrade reflects Bernstein’s assessment that "upside surprises from the growth drivers are limited" for the pharmaceutical company as it prepares for the patent expiration of its prostate cancer drug Xtandi in 2027.
Astellas has been developing several products to offset the expected revenue decline, including Izervay for geographic atrophy, Padcev for bladder cancer, and Veozah for menopause hot flashes.
Bernstein’s analysis suggests that "robust growth acceleration from these products is unlikely" based on their product profiles, recent regulatory developments, and current sales performance.
The firm concluded that the current stock price "appropriately reflects the potential of Astellas’ commercial and pipeline assets," resulting in a balanced risk-reward profile for investors.
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