The FDA has just issued a press release stating that they have approved AstraZeneca’s (ADR) (NYSE:AZN) drug, Zurampic, for the treatment of high blood uric acid levels, which are associated with gout. The drug works by inhibiting the function or the proteins which enable uric acid to be reabsorbed within the kidneys. The FDA will now require AstraZeneca plc (ADR) (NYSE:AZN) to perform a postmarketing study to better predict any possible renal or cardiovascular side effects.
“Controlling hyperuricemia is critical to the long-term treatment of gout,” said Badrul Chowdhury, M.D., director of the Division of Pulmonary, Allergy and Rheumatology Products in the FDA’s Center for Drug Evaluation and Research. “Zurampic provides a new treatment option for the millions of people who may develop gout over their lifetimes.”
It will be interesting to see how shares of AstraZeneca plc (ADR) (NYSE:AZN) react to this news tomorrow morning. The stock increased 0.85% or $0.28 during the last trading session, hitting $33.23. About 2.35M shares traded hands. AZN has declined 52.01% since May 19, 2015 and is downtrending. It has underperformed the S&P500 by 49.75%.
From a total of 8 analysts covering AstraZeneca plc (ADR) (NYSE:AZN) stock, 6 rate it a “Buy”, 1 a “Sell”, and 1 a “Hold”. This means that 75% of the ratings are positive. The highest target price is $38 while the lowest target price is $34. The mean of all analyst targets is $36 which is 8.34% above today’s ($33.23) stock price. AstraZeneca plc (ADR) was the topic of 9 analyst reports since July 31, 2015 according to the firm StockzIntelligence Inc. Morgan Stanley upgraded shares on December 1 to a “Overweight” rating. S&P Research upgraded shares to a”Buy” rating and a $38 target share price in their report from a July 31. Credit Suisse downgraded AZN stock in a recent report from October 20 to a “Underperform” rating. Finally, Deutsche Bank upgraded the stock to a “Buy” rating in a report they issued on a September 14.
AstraZeneca PLC is a global biopharmaceutical company. The company has a market cap of $82.30 billion. The Firm discovers, develops and commercializes prescription medicines for cardiovascular and metabolic diseases; oncology; respiratory, inflammation and autoimmunity, and infection, neuroscience and gastrointestinal. It has 49.59 P/E ratio. The Company’s medicines include Crestor for managing cholesterol levels; Seloken/Toprol-XL for hypertension, heart failure and angina; Iressa for lung cancer; Faslodex for breast cancer; Zoladex for prostate and breast cancer; Nexium for acid-related diseases; Seroquel XR for schizophrenia, bipolar disorder and depressive disorder, and Synagis for RSV (respiratory syncytial virus), a respiratory infection in infants.