12th Jul 2023. 8.57am
Regency View:
Update
Regency View:
Update
AstraZeneca falls as lung cancer drug results fail to convince
AstraZeneca’s (AZN) share price dropped last week following the release of phase 3 trial results for its lung cancer drug, datopotamab deruxtecan.
Investors had hoped for a success similar to AstraZeneca’s previous cancer treatment, Enhertu. The trial focused on advanced non-small cell lung cancer patients and found that the drug could delay cancer progression longer than the current standard treatment.
However, analysts expressed concerns about the lack of clinical significance mentioned in AstraZeneca’s press release. Further analysis is needed to fully interpret the results, although the company expressed encouragement regarding early overall survival data trends.
The challenging nature of the trial and the potential for misinterpretation by investors were cited as factors contributing to the disappointment. Some investors also expressed worry over potential side effects causing lung scarring. AstraZeneca noted that similar side effects had been observed in previous trials and were mostly of low severity.
AstraZeneca had partnered with Japanese Pharma, Daiichi Sankyo for the development of datopotamab deruxtecan. Both companies have expressed their intention to discuss the trial results with regulatory authorities. The drug, which utilises an antibody therapy, aims to deliver chemotherapy more effectively and with fewer side effects, similar to Enhertu’s approach in treating cancer patients, particularly those with breast cancer.
AZN Daily Candle Chart
EasyJet suffers summer flight disruptions
EasyJet (EZJ) has confirmed the cancellation of 1,700 flights during July, August, and September, affecting travel to and from Gatwick airport.
The airline stated that 95% of the affected passengers have been rebooked onto alternative flights.
Despite the cancellations, EasyJet plans to operate approximately 90,000 journeys during the affected period. The airline clarified that the cancelled flights represent roughly one day’s worth of flights.
EasyJet attributed the challenges to several factors. The closure of Ukrainian airspace due to Russia’s war has caused congestion in the skies, resulting in disrupted flights. Additionally, planned strikes by air traffic controllers in Europe could also impact operations.
The market did not panic at the news and EasyJet’s share price continues to consolidate within a tight trading range.
EZJ Daily Candle Chart
Morgan Advanced Materials: Strong Q2 offsets Q1 cyber attack
Morgan Advanced Materials (MGAM) released a bullish half year trading statement last month, causing the shares to jump higher.
The next gen materials manufacturer said sales in the second quarter are expected to be around 9% higher than the second quarter of 2022 – offsetting the impact of a cyber attack in the first quarter.
Total sales for the six months to June 2023 are expected to be around 2% higher on an organic constant-currency basis, compared to the same period last year.
MGAM kept its full year outlook unchanged with the company expecting between 2-4% organic revenue growth.
Pete Raby, Chief Executive Officer, said:
“The business is well positioned. Our planned investment in new capacity, products and technologies to support our Faster Growing Markets is continuing at pace and we are well placed to benefit from the substantial growth opportunities that these markets present”.
The market responded positively to the update and the shares have formed a new inflation point near a key level of long-term support.
MGAM Daily Candle Chart
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