AZN - Astellas Worth A Look On Revenue Re-Acceleration Potential

• Astellas looks posed to exit a period of prolonged weak revenue growth and see acceleration into the mid-to-high single-digits on multiple product/indication approvals.
• Xtandi will remain the lead drug for the foreseeable future, but compounds for menopausal vasomotor symptoms, bladder cancer, gastric cancer, and AML should grow and diversify the business.
• Newer R&D efforts in areas like mitochondrial disorders, cell therapies, and gene therapies are further back, but hold promise as Astellas restructures around expertise-driven R&D.
• Five-year revenue growth of 6%-7% and long-term growth of 2%-3%, coupled with double-digit EPS growth through 2026 can support a fair value in the high-teens (ADRs).

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