AstraZeneca Stock Is Up 10% on Tariff News. But Is the Pharmaceutical Giant a Buy?

Core Viewpoint - AstraZeneca's shares have increased by over 10% following positive clinical study results for Enhertu in treating HER2-positive early breast cancer and due to Pfizer's significant deal with the Trump administration [1][8]. Group 1: Pfizer's Deal and Its Implications - Pfizer announced a plan to reduce prescription drug prices in the U.S. and invest $70 billion in domestic operations, alongside a new website to help consumers find discounted medications [2]. - Pfizer will benefit from a three-year grace period exempting it from tariffs on pharmaceutical imports to the U.S. [3]. Group 2: Potential Benefits for AstraZeneca - AstraZeneca may also benefit from Pfizer's deal, as President Trump indicated that similar agreements could be forthcoming, positioning AstraZeneca as a potential candidate for such deals [4]. - AstraZeneca has committed $50 billion to expand in the U.S., including the largest manufacturing investment in its history, which may help secure tariff exemptions similar to Pfizer's [5]. Group 3: Investment Outlook for AstraZeneca - The uncertainty affecting the biopharmaceutical industry, including AstraZeneca, has diminished, leading to speculation about the stock's potential as a buy [7]. - AstraZeneca is reasonably priced with a forward price-to-earnings ratio of around 15 and has shown strong earnings growth, supported by positive results from late-stage clinical studies [9].