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    Is AstraZeneca (LSE:AZN) Undervalued As Its Lung Cancer Filing Draws Fresh Attention?

    Simply Wall St·09/30/2026 19:28:58
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    AstraZeneca (LSE:AZN) just filed a US New Drug Application for combining Orpathys with Tagrisso in a specific form of advanced lung cancer, putting fresh attention on the group’s oncology pipeline.

    Recent trading tells a more mixed story. AstraZeneca’s share price has declined over the past quarter, with a 90 day share price return of 15.53% down, while the 1 year total shareholder return is slightly positive at 0.43%. This suggests long term holders have fared better than recent buyers, despite the steady stream of oncology updates and the recent £2 billion Summit Therapeutics deal.

    Spot opportunities beyond AstraZeneca by scanning a curated set of pharma and biotech names with strong fundamentals using our list of solid balance sheet and fundamentals (9 results).

    The recent slide in AstraZeneca looks less like a verdict on its oncology engine and more like a sharp swing in mood. The next step is to see how that sentiment lines up against valuation.

    Most Popular Narrative: 23% Undervalued

    AstraZeneca closed at £122.80, while the most followed narrative pegs fair value at £159.11, using a 7.38% discount rate to weigh future cash flows.

    The company's robust and diversified late-stage pipeline, particularly in oncology, rare diseases, and cardiovascular/metabolic therapies, is set to deliver multiple blockbuster launches over the next several years. Management estimates these new medicines could generate $10+ billion in peak risk-adjusted revenue, directly supporting both long-term high-margin revenue growth and future earnings expansion.

    See why 206 investors see AstraZeneca as 23% undervalued.

    Result: Fair Value of £159.11 (UNDERVALUED)

    Still, AstraZeneca faces real pressure from its heavier reliance on blockbuster drugs and its rising exposure to government pricing and biosimilar competition, which could challenge this upbeat narrative.

    Find out about the key risks to this AstraZeneca narrative.

    Next Steps

    If the split between enthusiasm and concern around AstraZeneca feels sharp, that is exactly why the data matters. You can take a closer look at both sides of the story by reviewing the 4 key rewards and 1 important warning sign.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.