AstraZeneca share price rises after upbeat trial results for diabetes drug

Oncology drug granted priority review in the US

AstraZeneca share price rises after upbeat trial results for diabetes drug

Shares in AstraZeneca (LON:AZN) have climbed higher in London in today’s session following upbeat trial results for its diabetes treatment Farxiga, and as the company said that one of its oncology treatments was granted priority review in the US. The good news follows the Anglo-Swedish drugmaker’s corporate results last week which showed a rise in product sales in the third quarter of the year.

As of 10:13 GMT, AstraZeneca’s share price had added 1.73 percent to 6,279.00p. The shares are outperforming the broader London market, with the benchmark FTSE 100 index currently standing 0.14 percent higher at 7,115.21 points.

AstraZeneca delivers good news

AstraZeneca announced in a statement this morning that a trial had shown that its treatment Farxiga ‘significantly’ cut hospitalisation for heart failure or cardiovascular death in patients with type-2 diabetes.  The pharmco explained that the cardiovascular outcomes trial had included more than 17,000 patients across 33 countries.

“These positive results are clinically relevant to the 425 million people worldwide living with diabetes,” Elisabeth Björk, Vice President, Head of Cardiovascular, Renal and Metabolism, Global Medicines Development at AstraZeneca, commented in the statement.

The blue-chip pharmco announced in a separate statement that the US Food and Drug Administration had accepts regulatory submission for AstraZeneca’s treatment Lynparza as maintenance therapy in newly-diagnosed, BRCA-mutated advanced ovarian cancer. The regulator granted priority review to the therapy, which is jointly developed with Merck.

Analysts on FTSE 100 drugmaker

Deutsche Bank reaffirmed AstraZeneca as a ‘hold’ today, with a price target of  6,500p on the stock, while Shore Capital reiterated its ‘buy’ rating on the company, without specifying a valuation on the shares. According to MarketBeat, the Anglo-Swedish drugmaker currently has a consensus ‘buy’ rating and an average price target of 5,880.82p.

As of 10:37 GMT, Monday, 12 November, AstraZeneca plc share price is 6,269.00p.

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