AstraZeneca: Credit Suisse still a buyer
(CercleFinance.com) - AstraZeneca has announced signing an agreement with Japan's Daiichi Sankyo for the development and commercialisation of a novel antibody for the treatment of cancer tumours.
The partnership will be based on DS-1062, an antibody targeting a membrane glycoprotein present in numerous tumours, including lung and breast cancer.
Following this announcement, Credit Suisse confirms its Outperform rating on the share, with a target price of 9,000 pence.
"AZN is clearly very enthusiastic about the foundational potential of TROP2 across multiple tumour types. $4.5bn peak sales potential," Crédit Suisse says.
"We conservatively assume $2.5bn peak sales in lung cancer (30% prob) and $1bn in each of bladder and TNBC (15% prob). We assume first launch in 2023E," it adds.
"We increase Core EPS by an average 1% from 2023 to 2025 with significant leverage potential".
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The partnership will be based on DS-1062, an antibody targeting a membrane glycoprotein present in numerous tumours, including lung and breast cancer.
Following this announcement, Credit Suisse confirms its Outperform rating on the share, with a target price of 9,000 pence.
"AZN is clearly very enthusiastic about the foundational potential of TROP2 across multiple tumour types. $4.5bn peak sales potential," Crédit Suisse says.
"We conservatively assume $2.5bn peak sales in lung cancer (30% prob) and $1bn in each of bladder and TNBC (15% prob). We assume first launch in 2023E," it adds.
"We increase Core EPS by an average 1% from 2023 to 2025 with significant leverage potential".
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.