Market News

Here’s How AstraZeneca Is Gearing up against Lymphoma

Story Highlights

AstraZeneca has multiple drugs to fight cancer, cardiovascular, oncology, and many other diseases. In its combat against lymphoma, the company has now agreed to buy TeneoTwo for $100 million.

Drug manufacturing giant AstraZeneca PLC (NASDAQ: AZN) has agreed to purchase the outstanding shares of TeneoTwo, Inc. for approximately $100 million. TeneoTwo, a subsidiary of TBio, LLC, is known for TNB-486.

The American Depository Receipts (ADRs) of this $203-billion company slipped approximately 1% in the pre-market trading session on Tuesday.

Inside the Headlines

It is worth noting that TNB-486 is a T-cell engager (in the clinical stage), which can be used for killing cancer cells by directing T-cells in the immune system. TNB-486 is being evaluated for the treatment of lymphoma.

The addition of TNB-486 will boost AstraZeneca’s efforts to build more drugs to address blood cancer.

The Senior Vice-President of Haematology R&D at AZN, Anas Younes, said, “We believe this innovative molecule, which was designed to optimize the therapeutic window of T-cell activation, will enable us to explore novel combinations that have the potential to become new standards of care in this setting.”

In addition to the upfront payment of $100 million, AstraZeneca might consider making other payments to the shareholders of TeneoTwo if some R&D and commercial requirements are accomplished.

AstraZeneca forecasts the deal to conclude in the third quarter of 2022.

Wall Street’s Take

On TipRanks, AstraZeneca has a Moderate Buy consensus rating based on two Buys. AZN’s average price target is $77.50, reflecting upside potential of 17.51% from current levels. Over the past year, the ADRs of AstraZeneca have increased 10.1%.

A few days ago, Sachin Jain of Bank of America Securities reiterated a Buy rating on AZN with a price target of $80 (21.3% upside potential).

Bloggers’ Opinion

According to TipRanks, financial bloggers are 93% Bullish on AZN versus the sector average of 71%.

Conclusion

The buyout of TeneoTwo is expected to strengthen AstraZeneca’s fight against blood cancer. The buyout also has the potential to boost the company’s top-line prospects in the years ahead.

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