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AstraZeneca’s New Oncology Portfolio May See Healthy Growth

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Nov. 20 2020, Updated 4:06 p.m. ET

New oncology portfolio performance in 1Q17

In 1Q17, AstraZeneca’s (AZN) new oncology portfolio reported global sales of around $236.0 million. Tagrisso earned revenues of around $171.0 million globally and also secured 48 regulatory approvals in the United States, Japan, and Europe. In 1Q17, ovarian cancer drug Lynparza reported revenues close to $57.0 million, which is a 32.0% YoY (year-over-year) growth on a constant currency basis.

If AstraZeneca continues to witness solid demand trends for its new oncology portfolio, it may have a favorable impact on its stock as well as the stock of the Vanguard Total International Stock ETF (VXUS). AstraZeneca makes up about 0.17% of VXUS’s total portfolio holdings.

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In China, AstraZeneca launched Tagrisso in April 2017, which was within a month of regulatory approval and much faster than what is usually the case for other new drugs in the country. That highlights the strength of AstraZeneca’s commercial team. To know more about Tagrisso, please refer to Label Expansion May Boost Revenues for AstraZeneca’s Tagrisso.

While there is intense competition among ovarian cancer players such as AstraZeneca, Pfizer (PFE), and AbbVie (ABBV) in the United States, increasing testing rates and improving awareness may drive future revenue growth for Lynparza. Based on data from the company’s Phase III SOLO-2 trial, AstraZeneca plans to expand Lynparza’s label as a second line maintenance therapy for ovarian cancer patients. The company also aims to secure approval for Lynparza in breast cancer indications. To know more about Lynparza, please refer to AstraZeneca’s Lynparza Is Still a Leading PARP Inhibitor in 2016.

Label expansion

Data from the FLAURA trial, which is a head-to-head study comparing Tagrisso with Roche Holdings’ (RHHBY) Tarceva or Iressa in its first line EGFR (epidermal growth factor receptor) mutant NSCLC (non-small cell lung cancer) segment, are anticipated in the second half of 2017. Tagrisso has already become the standard of care for EGFR T790M–Positive NSCLC. The FLAURA trial is expected to expand Tagrisso’s addressable market to include all first line EGFR mutant NSCLC patients.

In the next part, we’ll look at AstraZeneca’s research pipeline in its NSCLC segment.

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