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AstraZeneca Rises Almost 9% in a Month: How to Play the Stock
AZNAstraZeneca(AZN) ZACKS·2025-02-20 17:20

Core Viewpoint - AstraZeneca's stock has increased by 8.6% in the past month, driven by mixed fourth-quarter results and positive updates regarding investigations at its China subsidiary [1][2] Financial Performance - AstraZeneca missed fourth-quarter earnings estimates but exceeded sales expectations, with revenues rising across all segments [1] - The company issued financial guidance for 2025, expecting total revenues to grow at a high single-digit percentage at constant exchange rates (CER) [3] Product Portfolio - AstraZeneca has a strong portfolio with 16 blockbuster drugs, each generating over 1billioninsales,includingTagrisso,Fasenra,andLynparza[4]−Oncologyisthelargestsegment,accountingforapproximately411 billion in sales, including Tagrisso, Fasenra, and Lynparza [4] - Oncology is the largest segment, accounting for approximately 41% of total revenues, with a 24% increase in sales in 2024 [5] Oncology Developments - The new cancer drug Truqap for HR-positive, HER2-negative breast cancer recorded sales of 430 million in 2024 [6] - AstraZeneca has important oncology candidates in late-stage development, including camizestrant and volrustomig [7] Non-Oncology Pipeline - Significant progress has been made in non-oncology areas such as cardiovascular health and rare diseases, with new drug approvals like Voydeya and Wainua [8] Innovation and Acquisitions - The company is investing in innovative technologies, exploring cell, gene, and RNA therapies [9] - In 2024, AstraZeneca acquired several small biotech firms to enhance its pipeline [10] Investigations and Regulatory Issues - Ongoing investigations at AstraZeneca's China subsidiary are a concern, with potential fines related to unpaid import duties totaling 0.9million[12]−ThecompanyanticipatesthatFarxigaandLynparzamaybeincludedinvolume−basedprocurementplansinChinain2025,whichcouldnegativelyimpactsales[13]StockPerformanceandValuation−AstraZeneca′sstockhasrisen13.40.9 million [12] - The company anticipates that Farxiga and Lynparza may be included in volume-based procurement plans in China in 2025, which could negatively impact sales [13] Stock Performance and Valuation - AstraZeneca's stock has risen 13.4% over the past year, outperforming the industry, which saw a decline of 5.2% [14] - The company's shares trade at a forward price/earnings ratio of 16.11, slightly lower than the industry average of 16.61 [16] Earnings Estimates - The Zacks Consensus Estimate for 2025 earnings has decreased from 4.70 to 4.52pershareoverthepastmonth[18]FutureOutlook−Despitechallenges,AstraZenecaexpectscontinuedgrowthinoncology,rarediseases,andcardiovascularsegments,aimingfor4.52 per share over the past month [18] Future Outlook - Despite challenges, AstraZeneca expects continued growth in oncology, rare diseases, and cardiovascular segments, aiming for 80 billion in total revenues by 2030 [21] - The company plans to launch 20 new medicines by 2030, with expectations that many will generate over $5 billion in peak-year revenues [21]