Is AstraZeneca the most expensive Biotech stock on Earth?
Given its valuation of 5.2 times sales and 54 times earnings, and its relatively low growth rate, AstraZeneca is definitely one of the more expensive biotechs out there. Overall, the rollout of its coronavirus vaccine is extremely unlikely to enrich the company's bottom line.
Why isn't AstraZeneca stock getting any love this pandemic year?
Wins by Moderna and BioNTech in its partnership with Pfizer are huge steps toward validating the messenger RNA technology that underpins their entire companies. AstraZeneca didn't even develop AZD1222. It doesn't have a long-term vaccine strategy anyway. The market isn't giving AstraZeneca stock any love in this pandemic year.
Does AstraZeneca have all the earnings-growth drivers it needs?
The pharmaceutical giant has an effective coronavirus vaccine and a multibillion-dollar acquisition in the works -- but does it have all the earnings-growth drivers it needs? AstraZeneca ( AZN -1.02% ) has arguably been one of the more disappointing coronavirus vaccine stocks.
Why did AstraZeneca pay $39 billion for Alexion Pharmaceuticals?
To combat stagnation, AstraZeneca announced in December that it would pay $39 billion in cash and stock to acquire Alexion Pharmaceuticals ( ALXN ). The biotech is known for its rare disease drug Soliris, which generates roughly $1 billion per quarter in revenue.
Is AstraZeneca stock a good investment?
AstraZeneca is a fundamentally healthy stock. But does the valuation make it a buy? Investors can snatch up AstraZeneca's market-beating 2.3% dividend yield at a forward price-to-earnings (P/E) ratio of 13.3. This is only moderately higher than the drug manufacturer industry average of 11.3.
Will AstraZeneca share price increase?
AstraZeneca share price insights Company announced a dividend of Rs 8.0 per share on 26 May, 2022 with record date of 8 Jul, 2022. 5 day moving crossover appeared on Jul 01, 2022. Average price gain of 3.7% within 7 days of this signal in last 5 years.
Is AstraZeneca a good stock to buy in India?
Is Astrazeneca Pharma India Ltd a good quality company? Past 10 year's financial track record analysis by Moneyworks4me indicates that Astrazeneca Pharma India Ltd is a average quality company.
Why are AstraZeneca shares falling?
Shares in AstraZeneca (AZN. L) slipped after the company announced it expects revenue from its COVID-19 medicines to fall by a fifth this year as demand wanes for its Oxford/AstraZeneca vaccine.
What is the AstraZeneca oncology portfolio?
The key driver is AstraZeneca's oncology portfolio, which has grown revenue by 24% in 2020. Blockbuster cancer drugs Tagrisso, Imfinzi, and Lynparza are putting up big growth numbers in important indications such as lung, breast, and ovarian cancer.
How many projects are in AstraZeneca pipeline?
The pandemic disrupted the company's respiratory drugs, which put up double-digit growth in 2019. AstraZeneca's pipeline is loaded, with 172 projects underway and nine new drugs in late-stage trials.
What company bought Alexion?
Drug companies also prize the rare disease field since insurance companies pay high prices for drugs that save small patient populations. AstraZeneca entered the rare diseases space with an announcement this weekend that it plans to acquire Alexion Pharmaceuticals ( NASDAQ:ALXN) in a $39 billion deal.
What is AstraZeneca AZD7442?
AstraZeneca is in late-stage testing of an antibody cocktail that could prove superior to the one from Regeneron that was given to President Trump. This medicine, AZD7442, consists of two antibodies developed by Vanderbilt University that have been enhanced for longer life using the company's proprietary technology.
When did Jim buy stocks?
Dec 16, 2020 at 6:19AM. Author Bio. Jim bought his first stocks in 1967 with paper route money and has been invested in equities ever since. He's still learning, though, and enjoys studying and investing in a wide variety of businesses.
Is AstraZeneca stock below its all time high?
AstraZeneca stock is 23% below its all-time high set this summer. It sells for a low 16 times the analyst consensus estimate for next year's earnings, despite expectations for a 19% boost in earnings per share in 2021. The dividend yields 2.6%.
Is the Phase 3 trial good enough?
Last month, it was announced that interim results from the phase 3 trial were good enough to warrant submitting the vaccine for regulatory approval. Yet there were low points, too.
Why did AstraZeneca pay $0.94?
Simultaneously, its earnings per share (EPS) decreased by 4% to $0.94 due to pandemic disruptions and declining sales of its respiratory drug, Pulmicort, in China. To combat stagnation, AstraZeneca announced in December that it would pay $39 billion in cash and stock to acquire Alexion Pharmaceuticals ( NASDAQ:ALXN).
How many pipeline candidates does AstraZeneca have?
An uphill battle to expand its core business. Even though AstraZeneca has 38 pipeline candidates in phase 1 trials, 54 in phase 2, and 41 in phase 3, it has been having trouble offsetting the declining sales of key products that have lost patent protection. In Q3 2020, the company grew its revenue by 3% year over year to $6.58 billion.
How much revenue does Alexion generate in 2020?
For 2020, Alexion expects to bring in up to $5.95 billion in sales, up 19% from the year prior. It is clear AstraZeneca has high expectations for the deal.
Does AstraZeneca make profit from AZD1222?
Nevertheless, AZD1222 is unlikely to significantly contribute to AstraZeneca's financials for some time. AstraZeneca has ple dged not to make a profit on its vaccine during the pandemic ; it will charge just $3 to $4 per dose on the worldwide distribution of its vaccine . Hence, even though the company has over 800 million orders ...
Is AstraZeneca a biotech?
Given its valuation of 5.2 times sales and 54 times earnings, and its relatively low growth rate, AstraZeneca is definitely one of the more expensive biotechs out there. Overall, the rollout of its coronavirus vaccine is extremely unlikely to enrich the company's bottom line.
Safe stock in recessionary times
The foremost is the fact that we are sitting in the midst of deep economic recession. It’s only a matter of time before it shows up in the numbers. It’s natural for investors to flock towards ‘safer’ stocks during times of such uncertainty.
Strong earnings
It follows that AZN’s financials haven’t been impacted by the crisis. In fact it has continued to perform well, as evident from its quarterly results, which were released a month ago. The company also expects continued good performance going forward. This optimism stands out for two reasons. First, because it is optimistic.
Even if you aren't crazy about the company's COVID-19 vaccine, this is still a growth investment worth considering for your portfolio
David Jagielski is a designated accountant and has spent 10+ years working in finance for small and large businesses in many different sectors. He has been writing for The Fool since 2017. When he's not out hunting for cheap stocks or writing articles, odds are he's writing macros in Excel or reading history books.
Key Points
AstraZeneca has been delivering strong growth numbers of late, and it's not running out of opportunities anytime soon.
The business is coming off a strong earnings report
On July 29, AstraZeneca released its earnings for the first half of 2021. There were many positives in the report, including 23% revenue growth and sales of $15.5 billion; the latter included a $1.2 billion boost from its COVID-19 vaccine.
More growth opportunities lie ahead
AstraZeneca still plans to apply for authorization of its vaccine in the U.S. before the end of this year. However, since the FDA has already given an Emergency Use Authorization to multiple COVID vaccines and more than 50% of the U.S. population has been vaccinated so far, even that potential green light might not bring in too much revenue.
How AstraZeneca's stock compares with other vaccine makers
Compared to Johnson & Johnson and Pfizer, AstraZeneca's stock looks fairly valued today, trading at a forward price-to-earnings multiple of about 13:
Is AstraZeneca stock a buy?
In August, investment bank SVB Leerink upgraded its price target for AstraZeneca's stock from $63 to $69. That price represents an upside of more than 23% from where it trades today.
What our experts say
Compared to many of its counterparts, the AstraZeneca vaccine is easier and less expensive to manufacture, store, and transport. It’s been featured prominently in the vaccination strategies of many developing and developed countries for these reasons.
Context and background
The AstraZeneca viral vector vaccine is a much less expensive and more widely available COVID-19 vaccine that has been in use since January 2021 in the United Kingdom and elsewhere. It is currently manufactured in three countries (United Kingdom, India, Netherlands), and sold under different names (Vaxzevria, Covishield).
A Satisfactory Coronavirus Vaccine
An Uphill Battle to Expand Its CORE Business
- Even though AstraZeneca has 38 pipeline candidates in phase 1 trials, 54 in phase 2, and 41 in phase 3, it has been having trouble offsetting the declining sales of key products that have lost patent protection. In Q3 2020, the company grew its revenue by 3% year over year to $6.58 billion. Simultaneously, its earnings per share (EPS) decreased by 4% to $0.94 due to pandemic disrupti…
What's The Verdict?
- Given its valuation of 5.2 times sales and 54 times earnings, and its relatively low growth rate, AstraZeneca is definitely one of the more expensive biotechs out there. Overall, the rollout of its coronavirus vaccine is extremely unlikely to enrich the company's bottom line. In addition, it's not yet clear whether it overpaid for Alexion. For thes...