AstraZeneca PLC (LSE:AZN) has put out mixed data for the Phase III trials of its immuno-oncology (IO) drug Imfinzi, notes broker ShoreCap.
There was a positive result from the phase III NIAGARA trial looking at its use perioperatively (either side of surgery) for the treatment of bladder cancer (MIBC).
The study showed a statistically significant and clinically meaningful improvement in event-free survival (EFS) and overall survival (OS).
Notably, this is the first time an IO agent has shown a benefit in this setting of cancer, ShoreCap added.
Separately, the company has also provided a high-level update on the Phase III ADJUVANT BR.31 trial, which has failed to hit its primary endpoint (of DFS).
This was aiming to move Imfinzi into an earlier setting of lung cancer (Stage IB-IIIA NSCLC) and while saying the result is disappointing, ShoreCap highlights there still remains a raft of separate studies ongoing that are also looking to move Imfinzi into earlier treatment lines of lung cancer.
“Imfinzi has increasingly become an important driver of growth over recent quarters, supported by launches into new indications.
“With c.85% of the FY27F consensus forecasts for Imfinzi already attributable to its use for lung cancer, we continue to view the opportunities outside of lung cancer as more important sources of near- to medium-term upgrades.
“Looking longer term, we highlight the trials looking at novel combinations designed to improve efficacy or address low PD-1 expressing cancers that could support upgrades for the broader IO franchise.”
Shorecap adds that its fair value target of 13,000p per share implied a premium price-to-earnings rating of around 17 times was readily justifiable but didn’t fully reflect the long-term growth outlook the company outlined at its Investor Day.
“We will look to update our FV and forecasts around the upcoming second-quarter results (25 Jul) but believe AZN still remains a Buy.”