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AstraZeneca (LSE:AZN) Secures EU Approvals; $125 Million Payment Due to Daiichi Sankyo

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AstraZeneca has seen a shift recently with the EU approval of ENHERTU® and Imfinzi®, which are likely influential in its 8% share price increase over the last quarter. These regulatory milestones highlight the company's advancements in oncology treatments. Meanwhile, the market has been volatile, with major indices experiencing significant declines amid global trade tensions and economic uncertainty, with the Dow Jones down 4%. Despite this backdrop, AstraZeneca has outperformed, reflecting confidence in its product pipeline and expansion initiatives, bolstered by strategic financial movements like the milestone payment to Daiichi Sankyo.

We've spotted 2 possible red flags for AstraZeneca you should be aware of.

LSE:AZN Revenue & Expenses Breakdown as at Apr 2025
LSE:AZN Revenue & Expenses Breakdown as at Apr 2025

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The last five years have seen AstraZeneca achieve a total shareholder return of 79.60%, indicating substantial long-term growth. This performance is further highlighted by its profit growth at an annual rate of 31% during the same period. Compared to the past year, AstraZeneca exceeded the UK Pharmaceuticals industry's return of 3.5%, showcasing robust market standing. This includes significant product approvals such as the 2021 recommendation for its COVID-19 vaccine AZD1222 and recent 2025 approvals for ENHERTU and Imfinzi in the EU and US, respectively. These approvals are complemented by steady revenue and net income increases, as seen in the first quarter of 2025.

Strategic R&D investments, including a new center in Beijing, have further supported long-term value creation. Additionally, a 7% dividend increase in 2025 and expanding focus on emerging markets contribute to AstraZeneca’s continued financial health. These factors help illustrate why AstraZeneca's stock has performed robustly relative to broader market trends over this period.

The valuation report we've compiled suggests that AstraZeneca's current price could be quite moderate.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.