AstraZeneca will present late-stage trial data for its Covid-19 vaccine candidate later this year as the UK drugmaker said it is on track to meet its 2020 financial guidance despite pandemic-led disruptions. Shares are advancing 1.9% in Thursday’s pre-market trading.
AstraZeneca (AZN) disclosed that meeting the deadline for releasing the results later this year will depend on the infection rate within the communities where the clinical trials are being conducted. Data readouts will be submitted to regulators and published in peer-reviewed scientific journals, the company added.
The update comes after AstraZeneca announced on Oct. 25 that it had resumed late-stage clinical trials globally as regulators in the US, UK, Brazil, South Africa and Japan confirmed that it was safe to do so. The clinical trials of AstraZeneca/Oxford’s Covid-19 vaccine candidate had been halted following an adverse event as a UK participant became seriously ill.
According to AstraZeneca’s quarterly earnings release, the drugmaker’s product sales in the three months ended Sept. 30, increased 7% to $6.52 billion and came in ahead of a company-compiled consensus of $6.5 billion. The company said that product sales growth was underpinned by its oncology pipeline and Farxiga.
Total revenue rose about 3% to $6.58 billion and was slightly below the $6.61 billion forecasted by analysts. The drugmaker posted core earnings of 94 cents per share, lagging the 98 cents analysts had been looking for.
“We advanced our vaccine collaboration with the University of Oxford and are launching Phase III trials for our long-acting antibody combination for the prophylaxis and treatment against COVID-19 for people who need an immediate defence or whose weaker immune systems mean they are less likely to benefit from a vaccine,” said AstraZeneca CEO Pascal Soriot. “Highlights of the sales performance included further success in Oncology and an acceleration in the progress of Farxiga. Our pipeline also excelled, with Farxiga expanding its potential beyond diabetes and heart failure with ground-breaking new data in chronic kidney disease, while regulatory submission acceptance was achieved for anifrolumab in lupus.”
Looking ahead, AstraZeneca confirmed that its financial guidance for FY 2020 remains unchanged. Total revenue is expected to increase by a high single-digit to a low double-digit percentage and core EPS is expected to grow by a mid-to high-teens percentage.
AZN shares are up 8% over the past 5 days, taking this year’s advance to 10.4%. (See AstraZeneca stock analysis on TipRanks)
CFRA analyst Wan Nurhayati recently reiterated a Buy rating on the stock with a $61 price target (11% upside potential) as she believes that the company’s other new medicines will help grow revenue in the high single-digit percentage range in 2020.
Nurhayati doesn’t expect the Covid-19 vaccine to be a major profit driver, as AstraZeneca is prioritizing affordable distribution.
Overall, AZN scores a Moderate Buy analyst consensus with 2 unanimous Buy ratings. Meanwhile, the $63 average analyst price target puts the upside potential at about 15% in the coming 12 months.
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