UBS cuts outlook on AstraZeneca to Neutral; shares ease over 1%

|About: AstraZeneca Group plc (AZN)|By:, SA News Editor

AstraZeneca (AZN -1.6%) was down 2% earlier in the session on the heels of a downgrade to Neutral by UBS. Analyst Jack Scannell says the risk/reward from its Phase 3 MYSTIC study assessing durvalumab in non-small lung cancer has changed from positive to "balanced" saying that overall survival data will not be available until 2018 and progression-free survival (PFS) results mid-year. He believes positive PFS data will not make the product a clear winner, but weak data could brand it a loser.

He adds that the company is generating higher revenues by selling assets and making deals in order to support greater investment in its pipeline and new drugs.

Source: Bloomberg

Previously: Shore sees "little reason" to own AstraZeneca past ex-d date, cites disappointment risk with outcome of late-stage study of durvalumab in lung cancer (Feb. 6)