AstraZeneca AZN announced that it has entered into an exclusive license agreement with China-based pharmaceutical company Dizal Pharmaceutical to acquire worldwide rights to develop and commercialize the latter’s lung cancer drug, Zegfrovy (sunvozertinib).
Zegfrovy, a novel oral irreversible epidermal growth factor receptor (EGFR) inhibitor, is approved for the treatment of adult patients with locally advanced or metastatic non-small cell lung cancer (NSCLC) with EGFR exon 20 insertion mutations, whose disease has progressed on or after platinum-based chemotherapy. The drug is currently approved in the United States and China for the given indication.
More on AZN’s Deal to Acquire Zegfrovy
Per the press release, Zegfrovy is the only oral targeted therapy for EGFR exon 20 insertion NSCLC approved in the United States and China for patients following prior systemic therapy.
Per the terms of the agreement, AstraZeneca will make an upfront payment of $600 million to Dizal as well as up to $900 million in additional development, regulatory and sales-based milestone payments. Additionally, Dizal is also entitled to receive tiered royalties on the global net sales of Zegfrovy.
The transaction is expected to be closed in the second half of 2026, subject to customary closing conditions. The deal is not likely to impact AstraZeneca’s financial guidance for 2026.
Dizal recently announced positive data from the phase III WU-KONG28 study evaluating Zegfrovy in first-line NSCLC with exon 20 insertion EGFR mutations. Based on these data, a supplemental new drug application has been submitted to the FDA and China’s Center for Drug Evaluation seeking approval for Zegfrovy in the first-line setting.
Both the FDA and China’s CDE have granted Breakthrough Therapy designation to Zegfrovy in the first-line setting.
AZN’s Stock Performance
Shares of AstraZeneca have plunged 9.6% year to date against the industry’s rise of 2.9%.
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AstraZeneca is one of the largest developers of cancer medicines. Oncology sales now comprise around 45% of the company’s total revenues. Sales in its oncology segment rose 16% at the constant exchange rate in the first quarter of 2026. AstraZeneca’s strong oncology performance was driven by medicines such as Tagrisso, Lynparza, Imfinzi, Calquence and Enhertu (in partnership with Daiichi Sankyo).
The latest deal to acquire global rights to Zegfrovy is likely to strengthen AstraZeneca's portfolio of cancer medicines targeting EGFR mutations.
AstraZeneca, in partnership with Daiichi Sankyo, markets Datroway (datopotamab deruxtecan), which is approved in the United States under accelerated approval for adults with locally advanced or metastatic EGFR-mutated NSCLC who have progressed after EGFR-directed therapy and platinum-based chemotherapy. Datroway is also approved for certain types of breast cancer indications.
AZN’s Zacks Rank & Stocks to Consider
AstraZeneca currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Amarin AMRN, Kiniksa Pharmaceuticals KNSA and Liquidia Corporation LQDA, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Amarin’s 2026 loss per share have narrowed from $6.36 to 65 cents. Over the same period, loss per share estimates for 2027 have narrowed from $4.64 to 51 cents. AMRN shares have risen 2.9% year to date.
Amarin’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 50.02%.
Over the past 60 days, estimates for Kiniksa Pharmaceuticals’ 2026 earnings per share have risen from $1.24 to $1.25, while estimates for 2027 have increased from $1.70 to $1.76 during the same time. KNSA shares have soared 50.2% year to date.
Kiniksa Pharmaceuticals’ earnings beat estimates in two of the trailing four quarters, while missing the same on the remaining two occasions, with the average surprise being 1.53%.
Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have risen from $2.97 to $3.02, while estimates for 2027 have increased from $4.81 to $4.92 during the same time. LQDA shares have surged 121.8% year to date.
Liquidia’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 54.40%.
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AstraZeneca PLC (AZN): Free Stock Analysis Report
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Kiniksa Pharmaceuticals International, plc (KNSA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).