Will AstraZeneca shares continue to exceed analysts’ forecasts in 2020?
AstraZeneca has seen its shares exceed analysts’ forecasts this year, and with the company’s partnership with Oxford University seeing their vaccine produce a ‘strong immune response’ its stock could soar even higher in 2020.
AstraZeneca has seen its shares exceed analysts’ forecasts this year and, with the company’s partnership with Oxford University reaping results with its Covid-19 vaccine producing a ‘strong immune response’ in early trails, its stock could soar even higher in 2020.
AstraZeneca shares closed at £86.48 per share on Monday, with the stock outperforming the broader market with the drug maker trading 12% higher year-to-date, while the FTSE 100 index is down 19% over the same period.
AstraZeneca-Oxford University Covid-19 vaccine produces strong immune response
AstraZeneca shares are likely to get a boost after its partnership with Oxford University has shown promising results from early stage trials for a potential coronavirus vaccine.
In fact, a new study published earlier this month in the scientific journal, The Lancet, showed that a team of scientists from Oxford University’s Jenner Institute and Oxford Vaccine Group have created a Covid-19 vaccine that induces a strong immune response to the virus.
'We are encouraged by the Phase I/II interim data showing AZD1222 was capable of generating a rapid antibody and T-cell response against SARS-CoV-2,’ Mene Pangalos, executive vice-president of BioPharmaceuticals R&D at AstraZeneca, said.
‘While there is more work to be done, today’s data increases our confidence that the vaccine will work and allows us to continue our plans to manufacture the vaccine at scale for broad and equitable access around the world,’ he added.
AstraZeneca shares exceed analysts’ forecasts in 2020
The drug maker continues to see its share price go from strength to strength, with the stock exceeding analysts' forecasts in 2020.
Analysts’ consensus price target for AstraZeneca sits at £83.31 per share, implying a potential downside for the stock of -3.6%.
However, with the company’s strong performance of late and its potential breakthrough with Oxford University in finding a vaccine for Covid-19 means the future looks bright for the British-Swedish drug maker.
AstraZeneca buys rights to breakthrough cancer treatment
On Monday, the pharmaceuticals firm also announced a $6 billion deal for DS-1062, a potentially groundbreaking new cancer treatment that targets specific proteins released by tumours rather than subjecting a patient’s whole body to chemotherapy.
AstraZeneca said it will pay up to $1 billion to its Japanese partner Daiichi Sankyo, with a further $1 billion if the treatment gains the necessary regulatory approvals and up to $4 billion if sales targets are met, according to a statement.
‘We are delighted to enter this new collaboration with Daiichi Sankyo and to build on the successful launch of Enhertu to further expand our pipeline and leadership in oncology,’ AstraZeneca CEO Pascal Soriot said.
‘We now have six potential blockbusters in oncology with more to come in our early and late pipelines,’ he added.
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