Novo Nordisk, Eli Lilly slide after Trump comments on weight loss drug pricing
Investing.com - Goldman Sachs has raised its price target on AstraZeneca (AZN:LN) (NASDAQ:AZN) to GBP150.13 from GBP148.83 while maintaining a Conviction Buy rating. The prominent pharmaceutical company, with a market capitalization of $242 billion, currently appears undervalued according to InvestingPro analysis. The company maintains strong financial health with a 15% revenue growth and has consistently paid dividends for 33 consecutive years.
The price target increase comes as AstraZeneca awaits Phase 3 trial results for efzimfotase alfa, an enzyme replacement therapy for hypophosphatasia (HPP). Goldman Sachs expects these results imminently, noting the primary completion dates for the HICKORY and CHESTNUT trials were July 9 and July 23, respectively. With analyst consensus remaining strongly bullish and three analysts recently revising earnings estimates upward, InvestingPro subscribers can access detailed analysis and 10+ additional expert insights about AstraZeneca’s potential.
Goldman Sachs believes the commercial potential of efzimfotase alfa is "underappreciated by the market," forecasting unrisked peak sales of $3.7 billion. This estimate is 85% higher than consensus estimates of $2 billion, though at the lower end of management’s guidance range of $3-5 billion.
Three Phase 3 trials for efzimfotase alfa are currently ongoing: the HICKORY trial in adult HPP patients expected to read out in the second half of 2025, the MULBERRY trial in pediatric HPP patients due in the first half of 2026, and the CHESTNUT trial in pediatric patients previously treated with Strensiq, expected in the second half of 2025.
The investment bank’s analysis focuses on evaluating the commercial opportunity in HPP for both efzimfotase alfa and the previous generation therapy Strensiq.
In other recent news, AstraZeneca reported impressive financial results for the second quarter of 2025, significantly surpassing analyst expectations. The company achieved earnings per share of $2.17, nearly doubling the forecast of $1.09, resulting in a 99.08% earnings surprise. Revenue reached $14.46 billion, exceeding the projected $14.09 billion by 2.63%. Additionally, AstraZeneca has paused its planned £200 million investment in its Cambridge research site, a decision that affects an expansion and the creation of 1,000 jobs. UBS has raised its price target for AstraZeneca to $4,925 from $4,260, maintaining a Buy rating due to a strong outlook. Goldman Sachs reiterated its Conviction Buy rating following promising Phase 3 trial data for baxdrostat, which showed significant reductions in blood pressure. These developments reflect AstraZeneca’s ongoing strategic adjustments and market confidence.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.