AstraZeneca was on the move again after yesterday's rise, following partial US approval for its schizophrenia drug Seroquel XR.
The Food and Drug Administration approved the treatment as an add-on for depression, but said it needed more information before allowing it as a lone remedy.
Astra added another 12p to £27.84 following yesterday's news the company was paying up to $1.24bn for an experimental antidepressant from Targacept. Panmure Gordon analyst Savvas Neophytou commented:
The approvals provide the company with a risk mitigation strategy ahead of Seroquel generics expected in September 2011. The shares are trading at a 18% discount to the large-cap European pharmaceutical sector on a PE of 9.2 times for 2010 and 8.3 times for 2011. We believe that most of the risks are adequately reflected in the price. We maintain our hold recommendation and price target of 3100p.
Overall the market has edged lower ahead of the widely watched US non-farm payroll figures due this afternoon. The FTSE 100 is down 22.08 points at 5290.92, with banks and insurers among the leading fallers. Royal Bank of Scotland is down 1.02p at 34.105p while Prudential is 18p lower at 632p.
