AstraZeneca PLC (LSE:AZN)'s share price surged by 2.6%, adding nearly £5 billion to the company's market value, following the announcement of encouraging results from an ongoing clinical trial on datopotamab deruxtecan, a drug aimed at treating breast cancer.
The pharma giant reported a "statistically significant and clinically meaningful improvement" in progression-free survival rates compared with traditional chemotherapy treatments.
Sean Conroy at Shore Capital said: "This was another pivotal readout for datopotamab deruxtecan and could reinvigorate sentiment about this drug's broader potential to replace systemic chemotherapy across a range of cancers while also providing another important read on safety."
Conroy added that AstraZeneca plans to initiate regulatory submissions based on the study's data, alleviating some initial concerns.
While the initial findings are viewed as positive, experts await more detailed data, potentially to be presented at the European Society for Medical Oncology (ESMO), before drawing firm conclusions.
At 12.28 pm, the shares were changing hands for £111.70, up £2.84.