AstraZeneca Shares Upgraded Thanks to Weak Sterling

AstraZeneca has built its leading presence in the pharmacetical and biotech industry but patent losses will impact short-term performance

Damien Conover, CFA 24 October, 2016 | 12:40PM
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Equity analysts have updated their fair value estimate for AstraZeneca (AZN) to £51 per share due to changes in the exchange rate. Despite major patent losses over the next two years, analysts project 1% annual sales increases over the next 10 years as new products should eventually offset major patent losses.

AstraZeneca is significantly cutting costs to mitigate lost profits

AstraZeneca has built its leading presence in the pharmacetical and biotech industry on patent-protected drugs and a developing pipeline that add up to a wide moat. However, the recent massive patent losses on gastrointestinal drug Nexium and cholesterol reducer Crestor will weigh on the company's near-term growth prospects.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
AstraZeneca PLC8,768.00 GBX0.33Rating

About Author

Damien Conover, CFA  is an equity analyst and associate director at Morningstar.