FTSE Gains Thanks to Strong Pharmaceuticals

Thu, 30th Jul 2015

The FTSE 100 put in a strong performance on Wednesday with Hikma Pharmaceuticals pushing the market higher thanks to some positive broker comments, and GlaxoSmithKline also gaining, thanks to a lower than expected fall in its quarterly earnings.

Hikma was the top performer of the day, gaining 3.7 percent, following on from an 11.6 percent jump on Tuesday, when it announced that it was planning to purchase Roxane, the generic drugs arm of Boehringer Ingelheim, for $2.65 billion. The deal was well received by analysts, with Augustin Eden of Accendo Markets noting that Hikma’s shares could be bound to regain their February highs over the coming weeks. The shares are still 8.5 percent away from their former highs.

Drugmaker GlaxoSmithKline gained 3.5 percent after it announced that it had dozens of new drugs and vaccines in development, and it noted that demand for new HIV medications had helped it to beat quarterly profit forecasts.

Shares in Barclays were up by nearly two percent, after the bank reported a 12 percent rise in profits. It said that it had plans to accelerate its cost cutting efforts and sale of its assets. The restructuring has been viewed positively by investors and analysts, who have noticed that key metrics are showing signs of improvement, and that these improvements are likely to continue over the coming months, giving the bank a comfortable capital cushion and a more robust income, which should be sustainable for them in the long term.

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