UK pharma sector up on US vote

The FTSE 100 ended the day and the week ahead on Friday, while the FTSE 250 saw declines for both the session and this week. The 100 added 0.1 percent during the day and was 0.3 percent higher on the week to close at 6,239. Meanwhile the 250 dropped 0.1 percent on Friday and 0.7 percent on the week to 11,111.7.

The pharmaceuticals sector was helped by a vote in the US House of Representatives that would let the government negotiate directly with drug companies on the prices of drugs for Medicare recipients. GlaxoSmithKline was 0.5 percent higher to £13.71, while AstraZeneca gained 1.3 percent to £28.73.

Bids rumors sent Woolworths up 3 percent to 34p. Baugur, which currently owns 10 percent of the retailer, is said to be considering offering a bid of 40p per share. Ladbrokes was helped by talk of a possible bid from private equity, gaining 2.4 percent to 449¼p.

In the oil sector, BP was 1.8 percent higher to 546½p on the news that its chief executive will retire in July, to be replaced by the company’s head of exploration and production.

Lloyds TSB added 1.7 percent to 593p on the possibility that its dividend could go up and after Cazenove upped its recommendation to “outperform”.

Discuss this in the Finance Markets forums

Story link: UK pharma sector up on US vote