Investors believe in AstraZeneca

The German economic-financial weekly Euro am Sonntag yesterday published a long article about AstraZeneca’s financial performance and the expectations for its future. AstraZeneca’s shares have increased by 15% YTD  and 32% over the last 12 months (London); they have recently achieved a record in the group’s history, with a P/E ratio of 27: because of this, the company has attracted investors’ attention. Many people familiar with the matter say that CEO Pascal Soriot is responsible for the good performance, since he has convinced investors that AstraZeneca’s rich pipeline and sound fundamentals will surely offset the poor results. Indeed, on the one hand, blockbuster Crestor’s patent has expired–one of the causes for its 17% EBIT plunge in Q2 2017–the group’s indebtedness has risen from $12bn to $15bn and Moody’s rating has decreased to A3 over the last 12 months.  On the other hand, analysts tend to positively assess the company, because its second quarter results were not so negative as expected and–especially–sales of 8 new drugs have risen to $1bn (+69%), which boosts hopes for the future. The major drugs include cancer drug Lynparza, which will deliver revenues of $550m this year, Faserna (for asthma) and Tagrisso.  Finally, AstraZeneca has promising ranking in China, which is now the second pharmaceutical market in the world after the US, and has improved its revenues by 24% over the first six months of the year.

(Source: Euro am Sonntag)