AstraZeneca: A Glimpse into Future Blockbuster Drugs

Citi has reiterated its 'buy' rating for AstraZeneca, highlighting the anticipated run of late-stage drug trial results in the latter half of 2026 as a primary catalyst for its shares. The firm is previewing the company's second-quarter earnings, expected on July 27, forecasting a 11% increase in earnings per share at constant exchange rates, though slightly below market consensus due to increased spending.

Attention will likely focus on the forthcoming phase three trial readouts, the crucial final testing phase before regulatory submissions. These include studies for the heart drug Wainua, the cancer treatment Datroway, and the breast cancer therapy camizestrant. Citi views the current investor caution as an opportunity, with its downside valuation scenario only 15% below the current share price.

Further upside may come from two other pipeline prospects. Detailed data on tozorakimab for chronic obstructive pulmonary disease could significantly boost peak sales estimates. Additionally, progress on efzimfotase alfa for hypophosphatasia, with trial data and potential filing updates, could unlock substantial value, contributing significantly to the bank's peak sales projections.