AstraZeneca shares rose on Tuesday after the company reported positive mid-stage trial results for its experimental obesity treatment, AZD7986.
The London-based pharmaceutical group said AZD7986 met its primary endpoint in the trial, demonstrating a statistically significant reduction in body weight compared with a placebo over a 12-week period. The drug targets the GDF15 pathway, which is linked to appetite regulation and energy expenditure.
AstraZeneca’s shares were up 1.8% in London trading, outperforming the broader FTSE 100 index, which was largely flat. The advance follows a broader rally in healthcare stocks, as investors weighed up the potential of new weight-loss therapies amid rising demand for obesity treatments.
AZD7986 is part of AstraZeneca’s pipeline of metabolic and cardiovascular drugs, which the company has positioned as a key growth area alongside its established oncology portfolio. The mid-stage trial included over 300 participants, with further data expected in the coming quarters as the drug moves toward potential late-stage trials.
Analysts at Jefferies noted that the trial results could support AstraZeneca’s case for AZD7986 as a competitive entrant in the obesity market, currently dominated by Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound. The Jefferies team maintained a buy rating on AstraZeneca’s stock, citing the drug’s mechanism and the company’s track record in metabolic research.
AstraZeneca’s pipeline also includes other metabolic and cardiovascular therapies, such as Farxiga for diabetes and heart failure, which have contributed to the company’s revenue growth in recent years. The company is scheduled to report its full-year 2024 financial results on February 14.
The stock’s recent performance reflects investor optimism around AstraZeneca’s ability to diversify its revenue streams beyond oncology, particularly in areas with high unmet medical needs.
