Pascal Soriot 'here today' after bad trial results wipe £10bn from AstraZeneca value

AstraZeneca has suffered its worst one day share price crash since its formation in 1993, after bad results from a landmark lung cancer drug trial wiped more than £10bn from its market value. The plunge in value intensified speculation about the future of its chief executive Pascal Soriot – who again repeatedly declined to explicitly deny reports he is leaving to run Israeli rival Teva – and the company’s vulnerability to takeovers three years after it rebuffed a £70bn offer by American giant Pfizer. But three top 20 shareholders, including star fund manager Neil Woodford, rallied to the management’s defence, with one adding that any takeover attempt would be politically unpalatable. Mystic – a trial of AstraZeneca’s immuno-oncology (IO) drug Imfinizi – failed to improve progression free survival in patients compared to using chemotherapy, the firm said. The trial was AstraZeneca’s big play for a bite of the fast-growing IO drugs market, worth $8bn (£6.3bn) today and projected to reach $50bn in value. AstraZeneca share price Shares in AstraZeneca, whose interim results were overshadowed by Mystic, closed down 16pc at £43, well down on the £55 a share offer made by Pfizer three years ago. It’s market valuation fell to £54.2bn, down from £64.7bn. Mr Soriot refused to be drawn on his own future when questioned by journalists, saying he was “here today” and “very committed to delivering our strategy”. He added: “I’m not a quitter – that’s as far as I will go”. He admitted the FTSE 100 firm was exposed to another takeover bid but argued it would have been “even more attractive” if Mystic had produced positive results. He called for “patience” from investors for more comprehensive overall survival results from Mystic next year. Mick Cooper, analyst at Trinity Delta, said a takeover tilt was now more …Read the rest of this story

Source:: https://finance.yahoo.com/news/astrazeneca-suffers-huge-setback-mystic-070249653.html