A buy has been reiterated by Citi brokers for AstraZeneca PLC (LSE:AZN) (AstraZeneca PLC (LSE:AZN)) on the back of the pharma's announcement that its Coronavirus (COVID-19) antibody combination, Evusheld, offers “neutralising activity” against the Omicron variant.
The bank's target price is £105.00.
Citi said, assuming commercial US Evusheld reimbursement at c.$2,000 per patient/annum, it expects a sustainable high margin of $1-2bn per annum for the drug in the absence of resistant variants.
Earlier the pharma said data on Evusheld's efficacy shows promise for wider use of the therapy.
The early data adds to a growing body of preclinical evidence demonstrating Evusheld retains activity against all tested variants of concern to date, AstraZeneca added.
“Evusheld is the first long-acting antibody to receive emergency use authorisation in the US for pre-exposure prophylaxis of COVID-19, in addition to authorisations in other countries, and we are working with regulators on applications for the use of Evusheld in treating COVID-19,” Mene Pangalos, executive vice president of BioPharmaceuticals R&D at AstraZeneca, said.
Evusheld received FDA Emergency Use Authorization (EUA) in the US on 8 December 2021 for pre-exposure prophylaxis (prevention) of COVID-19 in people with moderate to severe immune compromise and for individuals for whom COVID-19 vaccination is not recommended.
AztraZeneca's share price was up 0.52% at 8,512.06p in midday trading.
- adds broker comment, share price --