AstraZeneca: Mixed Phase 3 Datopotamab Deruxtecan Data Pressures Stock, but Reaction Looks Overdone

AstraZeneca reported mixed phase 3 data for datopotamab deruxtecan in lung cancer, but we don’t see the data as having a major impact on the firm’s fair value or wide moat. The cancer treatment datopotamab deruxtecan represents a moderate sales opportunity in our valuation model with peak annual sales close to $1 billion since we have only seen limited early-stage clinical data.