AstraZeneca’s shareholders have “a rocky road ahead”

AstraZeneca’s shareholders may have a turbulent time ahead as the UK’s second-largest drugs manufacturer enters a crucial year that will determine the success of its short-medium term drug pipeline, according to one analyst.

There have been concerns that AstraZeneca’s short-medium term product pipeline is relatively barren in comparison to rivals, as only five compounds are in late-stage development – and not all of them are certain to be successes.

AstraZeneca will receive important clinical trial results for two investigational compounds, according to Reuters Health. NXY-059 is designed as a treatment for strokes, while AGI-1067 is targeted at treating atherosclerosis. Both drugs are potential blockbusters, but much depends on trial results.

Reuters Health quotes brokerage ING as saying: “We believe the outcome of many of these events is unpredictable, creating a rocky road ahead for AstraZeneca shareholders.”

ING, which revised its share rating for AstraZeneca to “buy” from “hold”, stated: “Given the recent rally, we believe the rewards no longer outweigh the risks,” the company stated.

In May, AstraZeneca pulled Galida from development, despite reaching phase III clinical trials. It was found that the type II diabetes treatment did not offer any significant advantage over currently available therapies.

Last month, AstraZeneca’s chief executive, David Brennan, outlined a new strategy to increase the efficiency of its drug development programme, including the continuing purchase of Cambridge Antibody Technology, a manufacturer of monoclonal antibodies.

AstraZeneca has 79 new drug compounds in various stages of development.

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