AstraZeneca PLC (AZN) is a Cambridge, United Kingdom-based global, science-led biopharmaceutical company. The group focuses on discovering, developing, manufacturing and commercialising prescription medicines and has operations all over the world with business in over 100 countries. Though the company selectively pursue therapies in autoimmunity, neuroscience and infection, its three focus areas are Oncology, Cardiovascular & Metabolic Disease (CVMD) and Respiratory.
On May 03, 2019, the group's type-2 diabetes medicine Qternmet XR received approval from the US Food and Drug Administration. Development of drug is a time-taking and costly process, and it generally takes years to register any positive impact on the company’s bottom-line. The Qternmet, a combination of dapagliflozin, saxagliptin and metformin hydrochloride is targeting disease of affluence, and that's got to be a booming part of the future pharmaceuticals market and a very lucrative segment on which to spend a company's research cash.
In the past few months, the group has received a number of approvals from European commission like Forxiga for the treatment of Type-1 diabetes and Lynparza for the treatment of breast cancer.
But with all good news, the stock was down by 2.25% on a year-to-date basis and on a monthly basis the stock had delivered a negative return of 6.88 per cent respectively.
Daily price chart (as on May 07, 2019), before the market close. Source: Thomson Reuters
At the current market price (as on May 07, 2019 at 09:57 AM GMT), shares of AstraZeneca Plc were quoting at GBX 5,808.00 and added 67 points or 1.15% against the previous day closing price. Rally in AstraZeneca's stocks in today's market session was mainly on account of the US FDA approval for the Qternmet XR. During the past one-year, shares have registered a 52w high of GBX 6,540 and a 52w low of GBX 5,110, and at the current market price, as quoted in the price chart, shares were trading 12.2% below the 52w high price level and 12.3% above the 52w low price level.
At the current market price, the stock was trading at a PE (TTM) multiple of 39.6x, which was considerably above the Industry Median PE (x).
The outstanding market capitalization of the company stood at £75.60 bn, with a dividend yield of 3.75%.
Despite higher valuation, the group is a leading player in the pharmaceutical's arena, and consistently, it has delivered an EBITDA and Net Margin considerably above the industry median over the last couple of years. Also, at a return on equity standpoint, the group had delivered an ROE of 5.2% against the industry median of 1.6% respectively.
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