AstraZeneca Boasts Strong Oncology Portfolio: Can It Sustain Growth?

AstraZeneca AZN is one of the leading drugmakers in the oncology space. Oncology sales (comprising around 41% of AstraZeneca‘s total revenues) rose 13% in the first quarter of 2025, generating $5.6 billion in sales. The strong oncology performance was driven by medicines such as Tagrisso, Lynparza, Imfinzi, Calquence and Enhertu (in partnership with Daiichi Sankyo). AstraZeneca also has a profit-sharing deal with Merck MRK for Lynparza.AstraZeneca is working on strengthening its oncology product portfolio through label expansions of existing products and progressing oncology pipeline candidates.A key new cancer drug approval was that of Truqap for HR-positive, HER2-negative (HR+ HER2-) breast cancer. The drug has seen a robust launch, recording sales of $430 million in 2024 and $132 million in the first quarter of 2025. AstraZeneca and partner Daiichi’s drug, Datroway, was approved by the FDA for HR+ HER2- breast cancer in January and for EGFR-mutated non-small cell lung cancer (NSCLC) in June this year. Datroway witnessed encouraging early launch signals in the United States for the breast cancer indication in the first quarter.Important late-stage oncology candidates in AstraZeneca’s pipeline are camizestrant (HR+ HER2- metastatic breast cancer) and volrustomig (several types of cancers).AstraZeneca expects continued growth of its oncology medicines in 2025, particularly Tagrisso, Enhertu, Merck-partnered Lynparza and Imfinzi, despite the incremental impact of the Part D redesign. Our estimates for AstraZeneca’s total oncology portfolio suggest a CAGR of around 9% over the next three years.Competition in the Oncology SpaceOther large players in the oncology space are Pfizer PFE, Merck and Bristol-Myers BMY.Pfizer boasts a strong portfolio of approved cancer medicines like Xtandi, Lorbrena and the Braftovi-Mektovi combination. Pfizer’s oncology revenues grew 7% in the first quarter of 2025. The addition of Seagen in 2023 also strengthened its position in oncology by adding four ADCs — Adcetris, Padcev, Tukysa and Tivdak. Pfizer also has a robust pipeline of cancer candidates with a focus on multiple modalities, including small molecules, antibody-drug conjugates (ADCs) and immuno-oncology biologics. Merck’s key oncology medicines are PD-LI inhibitor, Keytruda and PARP inhibitor, Lynparza, which it markets in partnership with AstraZeneca. Keytruda, approved for several types of cancer, alone accounts for around 50% of Merck’s pharmaceutical sales.Bristol-Myers’ key cancer drug is PD-LI inhibitor, Opdivo, which accounts for around 20% of its total revenues.AZN’s Price Performance, Valuation and EstimatesAZN stock has risen 7.8% so far this year compared with an increase of 0.8% for the industry.Image Source: Zacks Investment ResearchFrom a valuation standpoint, AstraZeneca is reasonably valued. Going by the price/earnings ratio, the company’s shares currently trade at 14.69 forward earnings, slightly lower than 15.0 for the industry. The stock is also trading lower than its 5-year mean of 17.94. Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for 2025 earnings has declined from $4.50 per share to $4.48  per share over the past 60 days. For 2026, earnings estimates have been stable at $4.98 per share over the same timeframe.Image Source: Zacks Investment ResearchAstraZeneca has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AstraZeneca PLC (AZN): Free Stock Analysis Report Bristol Myers Squibb Company (BMY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks