AstraZeneca PLC (LSE:AZN) is set to see around a combined $3 billion peak annual sales boost from two new lung cancer treatments, according to UBS analysts, after the pharmaceuticals firm provided a pair of cancer drug updates today.
UBS anticipates peak sales of US$2.5 billion for Dato-DXd, which saw its application accepted by the US Food and Drug Administration on Monday.
Tagrisso, approved by the administration for use alongside chemotherapy in lung cancer patients, was forecast to bring incremental peak sales of US$500 million, meanwhile.
AstraZeneca unveiled the application for Dato-DXd, another lung cancer treatment on Monday, alongside news of approval for Tagrisso.
“Following a significant period of underperformance of AstraZeneca stock, we assume that this news, together with positive Tagrisso data, will lead to a positive share price bounce,” UBS noted.
On Tagrisso, UBS added: “We expect rapid adoption in identified stage III patients, but note that the biggest barrier to uptake will be the need to diagnose [...] as early as possible.”
UBS repeated a 'sell' rating for AstraZeneca though, noting news on Tagrisso was largely anticipated, while more data will be needed on Dato-DXd.
Shares in AstraZeneca climbed 3.2% to 10,416p, with the firm leading the FTSE 100’s risers.