(CercleFinance.com) – AlphaValue confirms its buy rating on AstraZeneca stock with an unchanged price target of 14,158 pence, the day after a session that saw the stock drop nearly 8% after the publication of positive results positive phase III around Dato-Dxd.
The markets were surprised by the company’s press release, which highlighted ‘a statistically significant improvement in progression-free survival’ of the disease in patients treated with Dato-Dxd suffering from non-small cell lung cancer.
However, the Anglo-Swedish laboratory did not mention a ‘clinically significant’ improvement (a term regularly used in this type of study), leaving some doubt as to the complete effectiveness of the treatment protocol.
The broker reports that ‘other elements about the effectiveness were not disclosed’ and that ‘there were a few deaths in the trials and no figures were provided’, underlines the broker.
Nevertheless, AlphaValue considers the reaction of the markets ‘excessive’ and adds that it is ‘too early to draw unfavorable conclusions given the six ongoing phase III trials’.
In this context, the stock market correction, combined with the fact that Astra’s shares have lagged behind Big Pharma ytd, should be considered ‘a good entry point’, believes the analyst office.
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