ShoreCap stays at 'buy' on AstraZeneca after EU approves Qtrilmet

Analysts at ShoreCap reiterated their 'buy' recommendation on shares of AstraZeneca following news that Brussels had approved its Qtrilmet treatment for controlling blood sugar levels in patients suffering from Type-2 diabetes.

Data from five Phase III clinical trials had demonstrated a superior performance by Qtrilmet over three rival combinations of various drugs in lowering long-term blood sugar levels.

It also revealed the non-inferiority of Astra's treatment versus insulin and metformin.

That, ShoreCap's Dr. Adam Barker said "was encouraging given it means Qtrilmet could be used across the T2D spectrum (patients don’t typically start with a requirement for insulin but can progress to this stage)."

To take note of, according to Barker European Union approval had already been largely expected; indeed, the treatment had already gotten the green light from US regulators in May 2019.

Furthermore, while diabetes remained an important franchise for AstraZeneca, accounting for approximately 23% of the company's BioPharmaceuticals business, Astra's key medicine in the space remained Farxiga, which represented over 55.0% of diabetes sales.

Nonetheless, said Barker: "We view Qternmet XR/Qtrilmet as adding to AstraZeneca’s wider diabetes portfolio and supportive of consensus estimates for this business segment."