Back to top

Analyst Blog

AstraZeneca (AZN - Analyst Report) recently entered into a research collaboration with a Russia-based institute, N.N. Petrov institute of oncology for identification of genetic mutations in patients suffering from cancer.

As per the terms of the agreement, teams from AstraZeneca’s oncology innovative medicines group will work with scientists from Petrov Institute at various centers across the globe.

We are positive on Astrazeneca’s deal with the Russian institute. It reflects the company’s efforts to boost/develop its pipeline. We believe that AstraZeneca’s pipeline must deliver since many of its drugs are facing/likely to face generic competition

Generic competition has adversely impacted AstraZeneca’s revenues over the past few quarters. 2013 is expected to be a challenging year for AstraZeneca. The company expects mid-to-high single-digit decline in revenues in 2013 primarily due to generic erosion of Seroquel IR and Crestor (in Canada) revenues.

This has put significant pressure on the company. Additionally, there is increasing uncertainty regarding the company’s key drug Crestor (cholesterol management) due to the entry of generic versions of a competitor drug. The company’s much hyped antiplatelet, Brilinta’s performance has remained lukewarm.

AstraZeneca is looking to combat the generic threat through deals and acquisitions. The Ardelyx and Isis Pharma agreements, Ardea acquisition, the collaboration with Amgen (AMGN - Analyst Report) and the expansion of the diabetes alliance with Bristol-Myers Squibb Company (BMY - Analyst Report) represent efforts in that direction.

AstraZeneca carries a Zacks Rank #3 (Hold). However, other large cap pharma stocks such as Bayer (BAYRY - Analyst Report) currently look more attractive with a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%