MARKET REPORT: AstraZeneca Stock Soars on Positive Breast Cancer Drug Trial
By Hugo Duncan | Updated: 18:10 BST, 23 September 2023
AstraZeneca shares experienced a significant boost after a successful trial of a drug designed to treat a common type of breast cancer. In the study, the drug, datopotamab deruxtecan (Dato-DXd), demonstrated a statistically significant and clinically meaningful improvement in slowing down cancer progression compared to other treatment options. This trial will continue to evaluate whether Dato-DXd can potentially extend the lifespan of breast cancer patients when compared to chemotherapy.
The development of this drug, which is being jointly developed by AstraZeneca and Japan’s Daiichi Sankyo, has positioned it to potentially become a best-selling product for the British pharmaceutical company. Following the positive trial results, AstraZeneca’s shares rose by 1.5%, or 160p, to 11046p.
This trial outcome is especially welcomed by AstraZeneca’s CEO, Sir Pascal Soriot, as the same drug is also being tested for its efficacy in treating lung cancer. Earlier this year, disappointing results from a separate lung cancer trial involving Dato-DXd led to a decline in the company’s stock value.
Moreover, AstraZeneca faced additional scrutiny recently when it was reported that Soriot is considering leaving the company in the near future. This revelation caused a temporary decline in the company’s shares earlier this month.
In other news, the FTSE 100 index saw a 0.07% increase, or 5.29 points, bringing it to a value of 7683.9. Conversely, the FTSE 250 index fell by 0.2%, or 31.7 points, landing at 18606.8. Market analysts believe that, although interest rates have likely reached their peak after 14 consecutive hikes since December 2021, an interest rate cut is not expected until well into next year.
On another note, Ocado experienced a turbulent week. After suffering a 20% drop in stock value – its worst performance in 11 years – the company saw a 6.7% gain, or 43.4p, bringing its value to 691.2p. Analysts at BNP Paribas Exane cited the recent share price rally as the cause of this volatility.
Meanwhile, Zegona Communications, an investment firm based in the UK, is currently in discussions with Vodafone regarding a potential acquisition of Vodafone’s Spanish division. Speculation suggests that the bid could value the unit at over £4 billion. Vodafone’s shares experienced a minor decline of 0.04%, or 0.03p, settling at 81p
Next, a well-known clothing retailer, received positive recognition from financial experts following their recent upbeat results. Analysts at JP Morgan raised the target price on Next shares to 7500p from 7300p. Similarly, UBS increased its target price to 7250p from 6850p. Despite this positive feedback, Next experienced a 0.7% dip, or 52p, bringing their share value to 7298p. Hargreaves Lansdown, an investment platform, also received favorable attention from analysts, resulting in RBC raising their target price to 900p from 875p. Hargreaves Lansdown shares rose by 1.7%, or 13.4p, reaching 825p.
The chemicals group, Croda International, has appointed a new chairman, Danuta Gray, to replace Anita Frew, who has held the position since 2014. Gray, who is currently the chairman of Direct Line and a non-executive director at Burberry, will officially assume her role at Croda in April. The announcement saw Croda shares rise by 1.1%, or 54p, to 4935p.
In addition, a restructuring has taken place at the catering giant Compass, with Gary Green stepping down as Chief Operating Officer for North America after a 40-year tenure with the company. Chief Financial Officer Palmer Brown will take over, while Petros Parras, the Finance Director for Europe and the Middle East, will succeed Brown. Green will officially step down at the end of November. Compass shares fell by 1.4%, or 29p, reaching 2017p.
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