Leading shares are edging lower ahead of UK GDP figures, with AstraZeneca the biggest faller.
The pharmaceuticals giant has dropped 73p to £33.17 after first quarter sales fell by 12%, more than expected. Operating profit was down 21%. Patent expiries hit the business, including on antipsychotic product Seroquel and heart drug Atacand in a number of markets and cholesterol treatment Crestor in Canada. Chief executive Pascal Soriot said:
As anticipated, the first quarter performance reflects the loss of exclusivity for several large products. We remain focused on our strategic priorities of returning to growth and achieving scientific leadership.
Analyst Savvas Neophytou at Panmure Gordon said:
Overall we have been advocating taking profits in recent weeks whilst the share price defies gravity. These results were not likely to change anyone's stance on the stock, with bigger challenges further down the line. The shares trade at a discount as they deserve to and re-inflating R&D tends to be a fix which takes a long time. Structurally sound but it takes a long time. No signs, as yet, of the great white hope of accelerating Brilinta sales but it is early days. With Savour data [diabetes trial] round the corner in September, there is no scope for being short but at current prices, nor is there any scope for putting fresh money into this stock. We retain our hold recommendation.
But with miners gaining ground as investors searched for value after recent declines, the damage is limited and the FTSE 100 has dipped 6.35 points to 6425.41.
Randgold Resources is the biggest riser, up 200p to £52.45 as Canaccord Genuity issued a buy note although it cut its price target from £83 to £64.
Vodafone has added 3.4p to 196.6p following a Reuters report that US group Verizon was working on a $100bn bid to take full control of their wireless joint venture.
