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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Pharma & Biotech

AstraZeneca has explaining to do after £50 billion value wipe out

At the start of September when its share price was at an all-time high and it was comfortably the UK’s largest company, AstraZeneca PLC (LSE:AZN) management might have been expecting a routine third-quarter update.

Two months on however and £50 billion has been wiped from its value with growing questions over its pipeline and operation in China.

Poor trial results and some questionable PR – putting out a three-sentence response to the China issue during the middle of Rachel Reeves’ Budget speech for example - have added to the unease.

The trial disappointments surround its dato-DXd cancer drug and its fledgling move into the weight loss drug arena.

In China, AstraZeneca has confirmed its president there Leon Wang is co-operating with the authorities as part of an ongoing investigation but has given no details, saying it will not comment on speculative media reports.

Some City commentators have suggested that the pharma is not directly involved and the share price fall is exaggerated.

ShoreCap, in a detailed look at the issue, added Astra could help alleviate investor concerns by providing clarity on its China business and reaffirming its growth prospects in the third quarter update.

Whether it chooses to remains to be seen

Shares today were 9,845p against 13,276p on 30 August.

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