ASTRAZENECA’S market value surged above £200 billion (S$338 billion) for the first time after a big bet on cancer drugs helped drive a rally in the shares.
Shares climbed as much as 0.5 per cent on Wednesday (Aug 14), extending an advance this year to 22 per cent. The firm’s market value closed above £200 billion for the first time on Tuesday.
AstraZeneca is the UK’s most valuable listed company, having kept a lead over Shell since April, and is ranked seventh in Europe by market value in US dollar terms.
“Its growth has been steady rather than showy, with the potential for advances in cancer treatment, and in some cases weight-loss drugs, attracting investor attention,” said Danni Hewson, head of financial analysis at AJ Bell. “It’s also a boon for London markets, which have been fighting to maintain their relevance.”
Chief executive officer Pascal Soriot, who has been at the helm of AstraZeneca since 2012, has won plaudits for boosting the stock price following Pfizer’s failed takeover attempt two years into his reign. His bet on cancer drugs lifted annual revenue to more than US$45 billion by 2023 and he is looking to cement his legacy with a further near-doubling of sales by 2030.
The company is also moving into new treatment areas, including weight loss. AstraZeneca plans to announce data from its experimental oral GLP-1 drug later this year, chief financial officer Aradhana Sarin said in an interview with Bloomberg Television last month. BLOOMBERG
