FTSE 100 pharmaceutical firm AstraZeneca (AZN) claims its breast cancer treatment Lynparza reduce the risk of the disease worsening or leading to death by 42%.
The company presented Phase III results from its OlympiAD trial at the ASCI Annual Meeting in Chicago over the weekend.
WHY HASN'T THE SHARE PRICE MOVED?
Broker Berenberg analyst Alistair Campbell says Lynparza will not be ground-breaking in commercial terms as he estimates US market potential of $130m.
That might explain why AstraZeneca’s shares barely move on the announcement, only nudging up 0.3% higher to £53.82.
The OlympiAD trial tested Lynparza against chemotherapy treatment in breast cancer patients carrying a mutation in BRCA genes, which when working correctly slow cell division that can lead to cancer.
‘MEANINGFUL BENEFIT’
Campbell at Berenberg highlights that Lynparza has demonstrated a ‘clinically meaningful benefit’ for ovarian cancer.
This means the drug could potentially tackle other cancers where similar genetic mechanisms are a root cause of the disease such as prostate and pancreatic cancer, according to Campbell.
He says: ‘Across the totality of these indications, we think the US market could be $1.3bn and the global market perhaps close to $3bn. Lynparza will be a major player in this market.’
FURTHER DETAILS ON THE NEWS
UBS analyst Michael Leuchten believes Lynparza will target several thousand eligible patients annually although he agrees the latest trial data is ‘encouraging for adjacent indications’.
He adds: ‘We already knew OlympiaAD had met its primary endpoint, but the data at ASCO’s plenary session filled in details. Lynparza was more effective than standard chemo at extending progression-free survival and patient-reported quality of life was better on Lynparza.’
