AstraZeneca PLC's (LSE:AZN) decline has gone too far, according to the analysts at Berenberg, who note that attention in 2025 switches to the breast cancer, hypertension and obesity pipelines.
Currently, the broker says that the shares are trading in line with the value of marketed drugs only, with no value assigned to the pipeline.
“We consider this to be too pessimistic, given the broad, deep pipeline at AstraZeneca and strong track record of predicted returns on R&D investment above cost of capital.
“Further positive momentum from clinical trial readouts through 2025 should support a higher valuation of the pipeline, in our view.”
Oncology news expected this year includes 2025 phase 3 (P3) readouts for Enhertu in earlier-stage HER2+ patients (US$5bn peak sales), camizestrant in hormone-sensitive patients (US$7bn peak sales) and Dato-DXd in triple-negative patients (US$700m peak sales).
Biopharma catalysts are also emerging in cardiovascular and metabolic with phase 3 readouts expected for baxdrostat (hypertension, USD6bn peak sales) and Breztri (asthma).
In obesity, share-price sensitive P2 trials could read out by end-2025 (oral GLP-1 and weekly amylin, USD20bn peak sales).
“We also expect clarity on potential combination assets with anti-obesity drugs.”
'Buy' with a price target of £140, or some 30% upside, is the broker’s view.
Shares today traded at £105.60, down 1.4%.