Stock market
AstraZeneca (L:AZN)
shares hit a record high on Friday, breaching for the first time the 55 pounds
a share level offered by Pfizer (N:PFE) in 2014 during the U.S. group's abortive
$100 billion attempt to buy the drugmaker.
The British firm's stock has been
on a roll recently, helped by a falling pound and speculation that
Switzerland's Novartis (S:NOVN) might be next to launch a bid. However, the
shares were lifted to a high of 55.05 pounds by the misfortunes of
Bristol-Myers Squibb (N:BMY).
The failure of Bristol's
immunotherapy drug Opdivo to slow disease progression in previously untreated
patients with lung cancer as hoped was seen by investors as good news for
rivals Merck & Co (N:MRK) and AstraZeneca.
Analysts at Leerink, Jefferies and Deutsche Bank (DE:DBKGn) said the negative result with Opdivo
increased the potential market opportunity for AstraZeneca's keenly watched
combination of durvalumab and tremelimumab.
Crucial clinical trial results with
durvalumab, both on its own and in combination with tremelimumab, are due next
year.
Chief Executive Pascal Soriot believes
AstraZeneca can become a major player in cancer drugs that bolster the immune
system. And its ability to carve out billions of dollars in potential sales
hinges not only on the effectiveness of its own products but on the competitive
profile of rivals.
Cancer is currently the hottest area of
research across the drugs industry and some analysts believe this could make
AstraZeneca a takeover target once again, with speculation turning last week to
Novartis as a bidder.
Source by Reuters
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