Encouraging Phase III DUO-O trial results from a new combination of AstraZeneca’s Imfinzi and Lynparza drugs plus Avastin in advanced ovarian cancer could give a boost to expectations for the UK pharma’s cancer treatments.
While only a headline announcement, Shore Cap said the benefit was demonstrated in patients without BRCA mutations, potentially broadening the scope of Imfinzi beyond its approved use in HRD+ patients.
Similarly, this could also provide an uplift in Astra’s cancer expectations, ShoreCap added, though any upgrades will depend on results from other ongoing PD-(L)1 combination trials.
These include GSK’s Phase III FIRST trial looking at Zejula plus Jemperli (data expected in the second half of 2023) and Merck’s Phase III KEYLYNK-001 trial looking at Lynparza plus Keytruda (expected in 2023).
Lynparza is already approved for use in combination with Avastin (bevacizumab) as first-line maintenance therapy in 50% of advanced ovarian cancer patients.
GSK’s Zejula is its closest competitor and has been approved for use irrespective of HRD status, though ShoreCap believes Lynparza is the clear leader of the class.
Astra shares trade on a 2024 PE ratio (PER) of 16 times, just ahead of its US and European peers group (15 times).
ShoreCap argues this warranted based on its industry-leading earnings growth and pipeline prospects with a 13,000p/share target implying an 18 times PER, which is justified by the longer-term potential, says the broker.