In April, AstraZeneca PLC (LSE:AZN) hit an all-time high above £122 per share, topping former suitor Pfizer, before retreating sharply.
It has been on the front foot in the weeks leading up to next Friday's quarterly update as investors have digested the disappointing news on a high-profile lung cancer study, where around £14bn was erased from its market value in one day, eventually reducing the shares to 17% of their earlier peak.
The results of a clinical trial of cancer drug datopotamab deruxtecan (Dato-DXd) showed a "less pronounced benefit than hoped", one set of analysts said, with others adding that there were "question marks over [its] potential".
There is still much to appreciate in the company though, most analysts acknowledged, including the ongoing success of drugs such as Tagrisso, Farixga, Symbicort, Imfinzi, and Lynparza, which have led to the top and bottom-line growth in recent years.
For the quarterly update, consensus estimates are for US$11.1bn of revenue, forecast core operating profit of US$4.1bn and core diluted EPS of US$2.02.
UBS is forecasting higher numbers, with major growth drivers being Tagrisso, Lynparza, Imfinzi, and Calquence.
Analysts said commentary will be keenly anticipated on sales expectations for Tagrisso, following positive data readouts from recent lung cancer trials, while investors will monitor the pace of Ultomiris patient conversion from Soliris, both acquired from the £27.5bn Alexion deal.
Notable catalysts for the second half include the Enhertu Destiny-Breast06 trial and Imfinzi EMERALD trial in locoregional liver cancer, UBS said.