AstraZeneca PLC (LSE:AZN) presented significant new data at a recent global cancer conference, the American Society of Clinical Oncology (ASCO), that further underpins its investment case.
That at least is the assessment of Shore Capital in a note that repeated the broker's 'buy' recommendation and £130 price target for shares in the Anglo-Swedish pharma giant.
Among the highlights from ASCO is the AZ drug Tagrisso. Shore is particularly impressed with data showing that this medication, when used after surgery in the early stages of a common type of lung cancer, can potentially halve the patient's risk of dying, compared to traditional chemotherapy.
Shore Capital also notes the promising data from a trial named DUO-O. This is studying the benefits of combining three existing cancer drugs: Lynparza, Imfinzi, and Avastin. The preliminary findings suggest that this combination could significantly slow down the progression of ovarian cancer in newly diagnosed patients.
The implications of these findings could be significant: At present, only around half of ovarian cancer patients are eligible for Lynparza treatment.
However, the DUO-O data suggests that the Lynparza-based triple therapy could make this treatment accessible to the remainder of these patients. Of course, final judgments should be reserved until the conclusion of this and related studies.
While ASCO has been a major platform for AstraZeneca this year, Shore Capital believes that the most important moment for the company in 2023 will be the announcement of the top-line data from another trial, TROPION-Lung01, later this month.
The shares, up 15% in the last year, were trading sideways on Wednesday as they changed hands for £118.80.