AstraZeneca Share Price Faltering After Trial Results, Retains Backing Leading Into ESMO

Astranzeneca's share price (LON: AZN) has been coming under pressure in recent days, with the last 5 trading sessions offering up a 6.40% drop. This has come off the back of trial results from TROPION-Lung01 Phase III which “did not reach statistical significance,” in overall survival rate according to the company.

Despite the pull back, AZN remains firmly green on a YTD basis, up 12.79%. Investment bank Morgan Stanley most recently retained its positive stance, maintaining an Overweight rating and upholding a £145 (14,500p) price target for the stock. This optimistic outlook is based on forecasts of robust revenue growth and promising developments in the pipeline.

A leading indicator of this growth is Morgan Stanley's projection of a 16% CER (constant exchange rate) revenue surge for AstraZeneca in the first half of 2024. This forecast could also pave the way for the company to revise its full-year 2024 revenue guidance upwards, translating from a predicted “low double-digit to low teens” growth, showcasing the firm's confidence in AstraZeneca's financial performance.

A significant event on the horizon for AstraZeneca is the European Society for Medical Oncology conference scheduled for September 13-17, 2024. This event could potentially act as a catalyst for the company by highlighting the potential for revenue diversification.

AstraZeneca's oncology portfolio, particularly Lynparza and Imfinzi, has received positive recommendations from the European Medicines Agency (EMA) for treating certain cancers. Furthermore, the U.S. Food and Drug Administration (FDA) has approved Imfinzi for endometrial cancer treatments, underscoring the company's success in expanding its drug approvals.

The company's market capitalization, at £188.67 billion, indicates its significant presence and influence within the global pharmaceutical industry. Its financial strength is further emphasized by an 8.6% revenue growth over the last twelve months as of Q1 2024, including a striking 16.55% quarterly revenue growth in the same period.