MARKET REPORT: AstraZeneca boosted by breast cancer drug trial

Shares of Astrazeneca rose after a positive trial of a drug for a common form of breast cancer.

The study found that datopomab deruxtecan showed a ‘statistically significant and clinically meaningful’ improvement in slowing the progression of the cancer compared to other treatments.

The study will continue to see whether the drug – known as Dato-DXd – can help patients live longer than those receiving chemotherapy.

It is hoped the drug, which AstraZeneca is developing with Japan’s Daiichi Sankyo, will become a bestseller for the British pharmaceutical giant.

AstraZeneca shares rose 1.5 percent, or 160p, to 11046p.

The trial results will be particularly welcome for the company and its veteran boss Sir Pascal Soriot, as the same drug is also being tested against lung cancer.

However, disappointing results from a separate trial of the lung cancer drug sent shares tumbling in July.

AstraZeneca shares also took a hit earlier this month when the Mail on Sunday revealed that Soriot has told friends he is considering leaving the company as soon as next year.

As investors were still digesting the Bank of England’s decision to freeze interest rates at 5.25 percent on Thursday, the FTSE 100 index rose 0.07 percent, or 5.29 points, to 7683.9, while the FTSE 250 fell 0.2 percent, or 31.7 points, to 18606.8. .

While many analysts believe interest rates have now peaked after fourteen rate hikes since December 2021, the first cut is not expected until well into next year, with the profile looking more like Table Mountain than Mount Everest.

This means that interest rates will remain at their highest levels for some time to come, rather than falling rapidly after a series of rate hikes.

Ocado continued its rollercoaster ride with gains of 6.7 percent, or 43.4 cents, to 691.2 percent, just a day after falling 20 percent – on what was the stock market’s worst day in eleven years.

Thursday’s sell-off was triggered by a brutal rating downgrade by BNP Paribas Exane analysts, who said the recent share price rally meant the stock ‘now appears to be out of balance again’.

British investment company Zegona Communications is in talks with Vodafone about the possible takeover of the telecom giant’s Spanish activities.

According to reports in Madrid, the bid could value the unit at more than £4 billion. Vodafone shares fell 0.04 percent, or 0.03p, to 81p.

Next was given the seal of approval by observers in the city after positive results this week. Analysts at JP Morgan increased the price target Next shares from 7300p to 7500p, while UBS increased its target from 6850p to 7250p. But Next shares fell, falling 0.7 percent, or 52p, to 7,298p. Hargreaves Lansdown was also in favor of analysts, with RBC raising its price target from 875p to 900p. The stock rose 1.7 percent, or 13.4p, to 825p.

Chemicals group Croda International has hired a new chairman to replace Anita Frew, who has held the position since 2014.

Danuta Gray, chairman of Direct Line and non-executive at Burberry, will join Croda in February and officially take over at the General Meeting of Shareholders in April. Croda shares rose 1.1 percent, or 54p, to 4935p.

There was also a shake-up at catering giant Compass, with Gary Green stepping down as Chief Operating Officer for North America after 40 years with the company. Chief Financial Officer Palmer Brown will take the helm, while Petros Parras, chief financial officer for Europe and the Middle East, will succeed him.

Green said he was “honored” to lead the company in North America. He will resign at the end of November.

Compass shares fell 1.4 percent, or 29 cents, to 2017 cents.