Crispr Therapeutics shares tumble after significant earnings miss
On Friday, Goldman Sachs reiterated its Conviction Buy rating on AstraZeneca (NASDAQ: NASDAQ:AZN) with a steady price target of $98.00. The endorsement comes as the pharmaceutical industry anticipates key developments in the oral PCSK9 inhibitor class, which is expected to gain investor attention through 2025-26. These developments could significantly impact the competitive landscape for cardiovascular drugs. With a market capitalization of $227 billion and an impressive 18% revenue growth over the last twelve months, AstraZeneca stands as a prominent player in the pharmaceutical industry. According to InvestingPro analysis, the company currently appears undervalued, with analysts setting price targets ranging from $67 to $97.
Goldman Sachs analysts highlighted the forthcoming Phase 2 PURSUIT trial data for AstraZeneca’s oral PCSK9 inhibitor, AZD0780, set to be presented at the American College of Cardiology ( ACC (NSE:ACC)) meeting on March 31, 2025. Additionally, Phase 3 data for Merck (NSE:PROR)’s enlicitide decanoate (MK-0616) is expected to be released during 2025, contributing to the evolving field. AstraZeneca’s strong financial position is evident in its "GREAT" financial health score from InvestingPro, which evaluates multiple factors including growth, profitability, and cash flow metrics.
The firm’s analysis points to a promising future for the oral PCSK9 class, driven by the potential for improved convenience and adherence compared to existing treatments. Oral options could also see increased use by primary care physicians. With the upcoming trial data, Goldman Sachs expresses confidence in AZD0780’s efficacy profile and its strategic fit within AstraZeneca’s portfolio. The drug is seen as a key component, particularly in synergy with other oral medications like Farxiga, baxdrostat, and AZD5004, which address a spectrum of related conditions.
Despite near-term patent expiries (LOEs) that AstraZeneca’s cardiovascular, renal, and metabolism (CVRM) business will encounter, the long-term outlook remains positive. The company’s focus on primarily oral combination therapies is expected to leverage its existing expertise and commercial infrastructure, potentially leading to increased operating leverage in the future.
In other recent news, AstraZeneca has announced a significant $2.5 billion investment to establish a new research and development center in Beijing. This expansion marks AstraZeneca’s second R&D center in China and aims to bolster its global strategic research efforts. The investment will unfold over the next five years and includes collaborations with Chinese biotech firms such as Harbour BioMed, Syneron Bio, and BioKangtai. Additionally, AstraZeneca is forming a joint venture with BioKangtai to develop and commercialize vaccines, marking its first vaccine manufacturing facility in China. Goldman Sachs has maintained its Conviction Buy rating on AstraZeneca, raising the price target to £151.30. The firm’s optimism is fueled by AstraZeneca’s developments in the oral PCSK9 inhibitor market, particularly with the AZD0780 compound. Meanwhile, AstraZeneca’s CEO, Pascal Soriot, noted China’s growing role in pharmaceutical innovation, highlighting the support from the Chinese government for the company’s new research initiatives. These developments underscore AstraZeneca’s commitment to expanding its research capabilities and partnerships in China.
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