AstraZeneca gets positive feedback on Imfinzi indication, IMI reports half-year of growth

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Sharecast News | 26 Jul, 2024

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The FTSE 100 is expected to open 20 points higher on Friday, having closed up 0.4% on Thursday at 8,186.35.

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AstraZeneca said on Friday that the FDA's oncologic drugs advisory committee had reviewed ‘Imfinzi’, or durvalumab, for treating resectable non-small cell lung cancer, acknowledging its effectiveness in increasing event-free survival based on a phase three trial. The FTSE 100 pharmaceuticals giant said the trial demonstrated that Imfinzi, combined with neoadjuvant chemotherapy before surgery and as adjuvant monotherapy after surgery, significantly reduced the risk of recurrence, progression, or death compared to chemotherapy alone, with a tolerable safety profile. It said the FDA would consider the committee's positive feedback while reviewing the supplemental biologics licence application (sBLA) for the indication.

IMI reported 5% organic sales growth and a 6% increase in organic adjusted operating profit in its interim results on Friday, with a 10 basis point improvement in adjusted operating margin compared to the first half of 2023. The FTSE 100 engineer said statutory operating profit rose 19% to £177m, and statutory profit before tax increased 17% to £163m, aided by a £4m benefit from its complexity reduction programme. It announced a 10% increase in the interim dividend to 10p, as well as a £100m share buyback.

Newspaper round-up

Rachel Reeves is expected to reveal a £20bn hole in government spending for essential public services on Monday, paving the way for potential tax rises in the autumn budget. Labour sources said the blame lay with the Tory government, describing it as a “shocking inheritance” and accusing the former chancellor of “presiding over a black hole and still campaigning for tax cuts”. – Guardian

Britain’s plans to create advanced devices based on the mind-bending physics of the quantum world have received a £100m boost, in a move ministers hope will have a transformative impact on healthcare, transport and national security. Peter Kyle, the science secretary has announced funds to establish five quantum technology hubs across England and Scotland. They will work with industry and government to develop and commercialise devices and ultimately drive a new economy. – Guardian

Stellantis is considering putting Italian carmaker Maserati up for sale after shipments halved, triggering a €349m (£294m) writedown on the brand. The owner of the Jeep, Peugeot and Vauxhall brands said revenues from its Maserati cars fell to €631m in the first six months of 2024, down from €1.3bn a year ago. – Telegraph

John Lewis has won approval for the first of its flagship housing developments after councillors shot down local opposition to approve the controversial scheme. The partnership has been granted permission to build 353 flats on top of a Waitrose store in Bromley, south-east London. Speaking at a planning meeting on Thursday, the development control committee chairman Alexa Michael said it was a “very finely balanced” case, but there was a “large need for housing”. The scheme passed with a vote of 10 against 5, with one councillor abstaining. – Telegraph

Britain’s accounting watchdog dished out a record amount in fines last year as it concluded a number of high-profile investigations, including into audits of Carillion and London Capital & Finance. The Financial Reporting Council, which oversees the nation’s audit and accounting firms, issued financial sanctions totalling £48.2 million in the year to the end of March, surpassing the previous record of £46.5 million set in the 2021-22 financial year. – The Times

US close

Major indices delivered a mixed performance on Thursday as market participants thumbed over some key data points and more corporate earnings.

At the close, the Dow Jones Industrial Average was up 0.20% at 39,935.07, while the S&P 500 lost 0.51% to 5,399.22 and the Nasdaq Composite saw out the session 0.93% weaker at 17,181.72.

The Dow closed 81.20 points higher on Thursday, extending gains recorded in the previous session.

Earnings were in focus again on Thursday, with Ford shares down after the automotive giant's Q2 earnings came in well and truly below expectations, while Chipotle shares were in the green after the fast-food giant topped both earnings and revenue expectations.

Elsewhere, American Airlines reported its highest-ever quarterly revenue for its second quarter on Thursday, at $14.3bn, although that still fell short of its own expectations, as the airline also lowered its full-year earnings guidance, while toymaker Hasbro said recent turnaround efforts and its divestiture of eOne had helped boost both sales and profits in Q2.

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