AstraZeneca (AZN.L): ESMO takeaways: sone-ve 3L data compelling, 2L more nuanced; AVANZAR delayed

We provide takeaways from AZN's ESMO updates and management call. From a data perspective, the key update for AZN was the full data presentation from sonesitatug vedotin's Phase 3 CLARITY-Gastric01 trial in gastric/GEJ cancers, presented in a Presidential session. We see the data as positive on balance, with a clear 3L outcome that clears our previewed bar and a strong OS benefit in the 2L population despite a PFS miss on statistical significance. Whilst the 2L opportunity is likely to be debated, we see potential for approval given the OS signal and believe the data are a step towards de-risking $1.7bn in revenue potential (of a total $3.8bn including 1L). Outside the Presidential session, early data for FRα ADC torvutatug samrotecan were a focus given competitor datasets, notably GMAB's Rina-S, whose highly positive Phase 3 data set a high bar (PFS HR of 0.29 vs chemotherapy);