Shares of AstraZeneca PLC (GB:AZN) fell by over 3% as of writing after the pharma company released an unsatisfactory outcome for its lung cancer drug trial. The company’s next-generation lung cancer drug, datopotamab deruxtecan, did not show a significant improvement in overall survival for patients.
AstraZeneca is a leading global pharmaceutical comp that serves billions of people worldwide. Datopotamab deruxtecan (Dato-DXd) is a targeted cancer drug jointly developed by Daiichi Sankyo Company (DE:D4S) and AstraZeneca.
AstraZeneca Reveals TROPION-Lung01 Trial Results
According to the results of the TROPION-Lung01 Phase III trial, patients using Dato-DXd survived just around 13 months on average, compared to almost 12 months with the current standard chemotherapy. The difference was not statistically significant.
The Dato-DXd drug was tested against the chemotherapy drug docetaxel in patients with recurring non-small cell lung cancer after one or two prior treatments.
Analysts Evaluate AstraZeneca’s Trial Results
Citigroup analysts stated that the drug’s performance has been “mixed.” They remain confident about its approval, despite the latest hit. However, Citi analysts believe that additional data may slightly increase short-term approval risks. Yesterday, analyst Peter Verdult from Citigroup reiterated a Buy rating on the stock. He predicts an upside of 14.4% in the share price.
Similarly, Jefferies also mentioned that the drug may encounter more regulatory challenges and delays to the FDA’s December 20 approval deadline. This could also limit the number of patients who receive the drug and may require testing of patients in advance to determine their suitability for the treatment.
Is AstraZeneca a Good Share to Buy?
As per the consensus rating on TipRanks, AZN stock received a Moderate Buy rating based on 10 Buys, four Holds, and on Sell recommendation.
