AstraZeneca's datopotamab TL01 study has revealed promising biomarker data in second-line lung cancer, particularly benefiting non-squamous patients. This data, presented at the World Lung conference, has led Bank of America Securities to maintain a Buy rating on AstraZeneca (AZN) stock, with a price target of p14,500.00.
Biomarker Data Analysis
Sachin Jain from Bank of America Securities highlighted that a proprietary quantitative continuous scoring algorithm indicated a higher percentage of non-squamous patients were TROP2 positive compared to squamous patients. This suggests improved efficacy in both the overall and non-squamous populations without AGA (mechanism of action not provided in source).
Implications for AVANZAR Phase III Trial
The strong biomarker data is anticipated to explain the efficacy imbalance observed in the TL01 study. Jain considers the biomarker strategy critical for the upcoming AVANZAR phase III trial, expected in the second half of 2025. This trial is viewed as a significant catalyst for AstraZeneca’s stock, with the potential for a substantial share price increase due to the large addressable market in first-line lung cancer treatment.
Ongoing Phase III Studies
AstraZeneca has three ongoing phase III studies in first-line non-small cell lung cancer (NSCLC), with AVANZAR being the largest opportunity due to its wide application across PD-L1 status and potential peak sales. The final overall survival data from the TL01 study is imminent and is expected to influence regulatory discussions and the FDA approval decision.
Analyst Confidence
Jain’s rating reflects confidence in the drug’s approval prospects and its potential market impact, with particular interest in the non-squamous population response, improvements in overall survival hazard ratio, and efficacy within subgroups defined by AGA presence. Citi also maintained a Buy rating on the stock with a £140.00 price target.
