19th Feb 2024 12:01
(Alliance News) - Shares in AstraZeneca PLC on Monday jumped after it reported positive developments for two leading cancer treatments.
Shares rose 3.1% to 10,408.63 pence each, making AstraZeneca the best performing stock in the FTSE 100 in London.
The Cambridge-based pharmaceutical company reported positive analysis from its Laura phase 3 trial for Tagrisso in lung cancer.
The treatment, following chemoradiotherapy, showed a "meaningful improvement in progression-free survival" for a group of sufferers of non-small cell lung cancer, versus those in the placebo group.
Overall survival data showed a "favourable trend" for Tagrisso, but Astra noted that the results "were not mature" at the time of the analysis. The trial will continue to assess overall survival as a secondary endpoint.
Separately, the firm announced that Tagrisso with chemotherapy received approval from the US Food & Drug Administration, for use in locally advanced or metastatic epidermal growth factor receptor-mutated non-small cell lung cancer.
Furthermore, AstraZeneca noted that its biologics licence application for datopotamab deruxtecan has been accepted by the FDA.
The application, made alongside Tokyo-based pharmaceutical firm Daiichi Sankyo Co Ltd, concerned the drug's use in the treatment of adult patients with locally advanced or metastatic non-squamous non-small cell lung cancer who have received prior systemic therapy.
UBS said that filing acceptances for both Laura and Dato-DXd were "fully anticipated," and that its forecasts assume 75% probability of USD500 million incremental peak sales for the Laura setting.
UBS explained that Laura represents GBP0.82 per share and 0.8% of its PharmaValues (or forecast pharmaceutical sales) net present value, compared to the total for Tagrisso in all settings of 15.2% of total NPV.
For Dato-DXd, UBS said its PharmaValues NPV assumes 80% probability of USD2.5 billion peak sales, of which USD1.5 billion would be in the US. This represents GBP1.68 per share of NPV, equivalent to 1.7% of total NPV.
UBS said that following a significant period of underperformance it assumed that the news would lead to a positive share price bounce today.
UBS currently has a 'sell' rating on AstraZeneca.
By Jeremy Cutler, Alliance News reporter
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