AstraZeneca's Tagrisso Combines for a New Standard in Lung Cancer Treatment

AstraZeneca’s Tagrisso (osimertinib) has redefined the treatment paradigm for EGFR-mutated non-small cell lung cancer (NSCLC), with recent clinical and commercial milestones solidifying its position as a cornerstone therapy. The FLAURA2 Phase III trial, presented at the 2025 World Conference on Lung Cancer, demonstrated that Tagrisso in combination with pemetrexed and platinum-based chemotherapy extended median overall survival (OS) to 47.5 months, compared to 37.6 months with Tagrisso monotherapy—a 23% reduction in the risk of death (hazard ratio [HR] of 0.77; p=0.0202) [1]. At 57% data maturity, 63.1% of patients in the combination arm were alive at three years, versus 50.9% in the monotherapy group [1]. These results, consistent across all prespecified subgroups, underscore Tagrisso’s role as a backbone therapy in EGFRm lung cancer, even as patients transition to subsequent treatments post-progression [2].

The clinical success of Tagrisso has translated into robust commercial performance. In 2024, the drug generated $6.6 billion in revenue, reflecting a 13% year-over-year increase, with Q2 2025 sales reaching $1.81 billion—a 12% rise compared to the prior year [2]. This growth is underpinned by AstraZeneca’s strategic expansion into new indications, including the recent UK National Institute for Health and Care Excellence (NICE) approval of Tagrisso as adjuvant therapy for stage 1B–3A EGFRm NSCLC, based on the ADAURA trial [3]. The drug’s dominance is further reinforced by its manageable safety profile, with chemotherapy-related adverse events (AEs) driving discontinuations in only 12% of combination therapy patients [1].

AstraZeneca’s broader precision oncology portfolio amplifies its competitive edge. Beyond Tagrisso, the company’s pipeline includes Imfinzi (durvalumab), which contributed $1.455 billion in Q2 2025 revenue, and Lynparza (olaparib), a PARP inhibitor with a 26% compound annual growth rate [4]. The global precision oncology market, valued at $147.9 billion in 2025, is projected to grow to $364 billion by 2035 at a 8.5% CAGR, driven by advancements in genomic sequencing and AI-driven drug discovery [5]. AstraZeneca’s investments in cutting-edge therapies—such as KRAS G12D inhibitor AZD0022 and GPRC5D antibody-drug conjugate (ADC) AZD0305—position it to address unmet needs in solid tumors and hematological malignancies [6].

Analyst sentiment remains overwhelmingly positive. AstraZeneca has received 13 analyst ratings in the past quarter, with 10 “Buy” and 3 “Hold” recommendations, and a 12-month price target of kr1,729.81 (a 12.84% upside from its last closing price) [7]. The company’s Q2 2025 earnings exceeded expectations, with revenue rising 11% year-over-year to $14.5 billion and core EPS growing 17% to $4.66 [2]. However, risks persist, including patent expirations for key assets like Lynparza (2027 in the EU, 2028 in the U.S.) and pricing pressures in key markets [8]. AstraZeneca is mitigating these challenges through a $50 billion U.S. investment plan, including its largest manufacturing facility, and a focus on lifecycle management to extend market exclusivity [1].

In conclusion, AstraZeneca’s leadership in precision oncology is anchored by Tagrisso’s clinical excellence, a diversified pipeline, and a strategic vision to achieve $80 billion in revenue by 2030. While competitive and regulatory headwinds exist, the company’s innovation in biomarker-driven therapies and AI integration positions it to outperform in the rapidly evolving oncology landscape. For investors, the combination of proven clinical outcomes, strong commercial execution, and a robust growth pipeline makes AstraZeneca a compelling long-term bet in the precision medicine era.

Source:
[1] Tagrisso plus chemotherapy demonstrated a median overall survival of nearly four years [https://www.astrazeneca.com/media-centre/press-releases/2025/tagrisso-plus-chemotherapy-demonstrated-a-median-overall-survival-of-nearly-four-years.html]
[2] AstraZeneca Top Selling Products - Farxiga, Tagrisso & More [https://www.accio.com/business/astrazeneca-top-selling-products]
[3] AstraZeneca gains NICE nod for lung cancer drugs Tagrisso and Imfinzi [https://www.pharmaceutical-technology.com/news/astrazeneca-gains-nice-nod-for-lung-cancer-drugs-tagrisso-and-imfinzi/]
[4] AstraZeneca’s Q2 2025 results [https://www.astrazeneca.com/media-centre/press-releases/2025/h1-and-q2-2025.html]
[5] Oncology Precision Medicine Market Report 2025 [https://www.globenewswire.com/news-release/2025/09/01/3142208/0/en/Oncology-Precision-Medicine-Market-Report-2025-Kinase-Inhibitors-to-Dominate-Oncology-Precision-Medicine-Market-Through-2035.html]
[6] Medicines: Oncology Portfolio and Pipeline [https://www.astrazeneca.com/our-therapy-areas/oncology/medicines-portfolio-and-pipeline.html]
[7] AstraZeneca (AZN) Stock Forecast & Price Target [https://www.tipranks.com/stocks/se:azn/forecast?hash=bestAnalystCovering]
[8] The End of Exclusivity: Opportunity or Crisis for Big Players? [https://www.delveinsight.com/blog/navigating-the-loss-of-exclusivity]