London-based biopharmaceutical company AstraZeneca PLC (AZN) develops and commercializes prescription medicines in oncology, cardiovascular, renal and metabolism, respiratory, infection, neuroscience, and autoimmunity. AZN’s recently launched EVUSHELD, a long-acting antibody combination for preventing COVID-19 in immunocompromised populations, is gaining popularity worldwide. Furthermore, impressive Phase III trial results for AZN’s Lynparza helped the stock soar in price lately. In addition, a $0.10 dividend hike for the first time in a decade and a high sales forecast for 2022 are attracting investor attention.
However, despite seeing healthy demand for COVID-19 vaccines, while major pharmaceutical companies delivered stellar earnings in the 2021 fourth quarter, AZN has faced significant operating and net losses. Consequently, analysts do not expect AZN’s earnings to improve significantly for the current quarter. But surging investments in R&D, growing demand for COVID-19 vaccines with the emergence of new variants, and a rising need for drugs to treat various rare and chronic diseases should continue to drive the pharmaceutical industry’s growth. Along with the industry’s solid growth prospects, the defensive nature of pharma stocks is fostering significant investor attention amid the current market volatility.
