2. AstraZeneca PLC (NASDAQ:AZN)
Number of Hedge Fund Investors: 46
Forward P/E ratio as of August 10: 19.60
AstraZeneca PLC (NASDAQ:AZN) is one of the top ten largest pharmaceutical companies in the world and has a market cap of $251.73 billion as of August 10. AstraZeneca PLC (NASDAQ:AZN) has substantial financial resources, research capabilities, and market presence. The company has more than 80,000 employees in over 100 countries and its products are sold in more than 125 countries. AstraZeneca PLC (NASDAQ:AZN) is a leader in the oncology, cardiovascular, renal, and metabolic diseases, respiratory and immunology along with other general diseases. The company is also becoming a leader in the cancer therapeutics market. As of the first quarter, the stock is held by 46 hedge funds which amounts to almost $2.17 billion. Fisher Asset Management is the largest investor in the company and has shares worth $654 million as of March 31.
AstraZeneca PLC’s (NASDAQ:AZN) stock price has increased by almost 15% over the last 12 months to $81 as of August 10 due to positive developments in its oncology (cancer treatment) franchise, particularly from successful clinical trials named LAURA, ADRIATIC, and DESTINY-Breast06. Additionally, AstraZeneca provided long-term revenue guidance for the first time, projecting $80 billion in revenue by 2030, which is a 75% increase from its 2023 revenue of $45.8 billion. This projection suggests an annual growth rate of 8% over seven years, which is higher than the growth targets of its competitors, such as GSK, Johnson & Johnson, and Novartis. Baron Health Care Fund in its Q2 2024 investor letter stated regarding AstraZeneca PLC (NASDAQ:AZN):
“Performance in pharmaceuticals and health care distributors was bolstered by solid gains from AstraZeneca PLC (NASDAQ:AZN) and McKesson Corporation, respectively. AstraZeneca is a global biopharmaceutical company with a focus on three main therapy areas based on its core competencies: oncology, cardiovascular and metabolic diseases, and respiratory illnesses. AstraZeneca’s shares increased given incremental positive news flow (LAURA, ADRIATIC, and DESTINY-Breast06 clinical trials) surrounding the oncology franchise. The company also published long-term guidance for the first time, projecting $80 billion in revenue by 2030, or 75% higher than 2023’s $45.8 billion. This projection implies an annual growth rate of 8% over seven years, compared with the 5% to 7% targets set by GSK and Johnson & Johnson and the 5% target set by Novartis.”
On June 17, AstraZeneca PLC (NASDAQ:AZN) announced that the FDA had approved a combination of Imfinzi plus two chemotherapy medications for oncology, called carboplatin and paclitaxel, for the treatment of primary advanced/recurrent endometrial cancer, which can affect over 67,000 women in 2024, according to the American Cancer Society. Imfinzi sales amounted to $1.11 billion in Q1 2024, an increase of 23.7% year-on-year, due to high demand in the United States and Europe for the treatment of patients with biliary tract cancer and small cell lung cancer. Enhertu, which is a high-efficacy medicine to treat patients with breast cancer also demonstrated a sales growth of 79.4% year over year and amounted to revenue of $461 million in the first three months of 2024, due to high demand from patients and doctors in the United States for the treatment of metastatic HER2-positive breast cancer, as well as non-small cell lung cancer.
AstraZeneca PLC (NASDAQ:AZN) has set an ambitious goal to reach $80 billion in total revenue by 2030. The stock has a forward PE ratio of 19.60, which is almost 4% lower than the sector average. The company still appears attractive given that earnings are expected to increase by 11% to $4.03 per share this year.
