AstraZeneca, a pharmaceutical giant, has been overlooked by investors due to its robust pipeline of therapies beyond oncology, according to Jefferies analyst Peter Welford. In this article, we will explore the potential of AstraZeneca’s late stage cardio and respiratory pipeline assets, shedding light on the opportunities they offer.
Welford argues that consensus has neglected to recognize the potential of AstraZeneca’s R&D assets, namely Airsupra, tozorakimab, and eplontersen. These assets provide significant upside optionality and have the potential to drive earnings and sales approximately 8% higher than consensus estimates.
Of particular interest is Airsupra, an asthma therapy that Welford describes as a “blockbuster rescue inhaler.” Backed by a proprietary physician survey indicating higher awareness and market penetration, Airsupra is expected to generate approximately $1 billion more in sales. The inhaler is set to launch in 2024 and is considered a “de-risked asset.”
Jefferies suggests that AstraZeneca’s tozorakimab drug for chronic obstructive pulmonary disease and eplontersen for hereditary transthyretin-mediated amyloid polyneuropathy are both underappreciated. Tozorakimab has the potential to reach peak sales of $4.5 billion, while eplontersen could generate up to $3.5 billion in sales. These assets present immense opportunities for AstraZeneca to expand its market presence.
AstraZeneca is positioning itself as the frontrunner in breast cancer treatments. Its jointly developed therapy with Daiichi Sankyo, Enhertu, is rapidly becoming the standard-of-care for breast cancer and is projected to reach $14 billion in sales. Additionally, another breast cancer therapy being developed in collaboration with Daiichi Sankyo, datopotamab deruxtecan, recently demonstrated promising results in slowing the progression of a common type of breast cancer in a late-stage trial.
While AstraZeneca’s pipeline assets hold considerable promise, it is crucial to consider potential downside risks. Welford highlights uncertainty surrounding upcoming lung cancer data and AstraZeneca CEO Pascal Soriot’s plans to leave the company. These factors may introduce volatility and impact the stock’s performance.
Despite recent declines in its stock price, AstraZeneca’s underappreciated pipeline assets and its strong position in breast cancer treatments make it an attractive investment opportunity. The potential of Airsupra, tozorakimab, and eplontersen to significantly surpass sales expectations, along with the success of Enhertu and datopotamab deruxtecan, position AstraZeneca for future growth and profitability. Investors should carefully consider the untapped potential of these therapies beyond oncology and seize the opportunity to invest in AstraZeneca’s bright future.
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