AstraZeneca Sells Zoladex, RBS Abandons Williams & Glyn Sale

Sarla Buch
20 Feb, 2017
New York City

AstraZeneca agreed to sell commercial rights of Zoladex to TerSera Therapeutics. Bertrandt net plunged 27%. Bovis Homes set aside

[R]4:00 PM Frankfurt – AstraZeneca agreed to sell commercial rights of Zoladex to TerSera Therapeutics. Bertrandt net plunged 27%. Bovis Homes set aside £7 million to deal with problems with customer service. RBS adjourns the sale of Williams & Glyn. Accenture agreed to buy 62% stake in SinnerSchrader.[/R]

In London trading, FTSE 100 index edged up 3.18 to 7,296.90 and in Frankfurt the DAX index increased 71.77 to 11,827.99.

In Paris, CAC 40 index slid 4.06 to 4,863.47.

AstraZeneca Plc slipped 0.7% to 4,561 pence after the U.K.-based drugs maker agreed to sell commercial rights of Zoladex for prostate and breast cancer treatment in the U.S. and Canada to TerSera Therapeutics for more than £257 million or $320 million.

The deal is expected to be complete in the first quarter of 2017.

Bertrandt AG gained 1.2% to €94 after Germany-based engineering services provider reported total revenues in the fourth-quarter ending in December increased 1.1% from a year ago to €246 million.

Net profit in the quarter plunged 27% from a year ago to €17.6 million compared to €24.1 million and diluted earnings per share jumped to €3.83 from €3.12.

Bovis Homes Group Plc tumbled 10.5% to 752.42 pence after the U.K.-based home-builder said revenues in the year ending in December jumped 10.9% from a year ago to £1.1 billion.

Net profit in the quarter declined 5.6% from a year ago to £120.8 million compared to £128 million and diluted earnings per share slumped to 90 pence from 95.2 pence.

The home-builder said operating profit in the year fell to £160 million from £163.5 million in a year ago period at an operating profit margin to slid 15.2% to 17.3%, due to administrative expenses and lower profit contribution from joint venture.

The builder set aside £7 million to deal with problems with its customer service.

In 2016, the group delivered 3,977 homes compared to 3,934 homes in a year ago.

Bovis homes, estimated completion volume in 2017 between 10% and 15% below the level from 2016.

Hammerson Plc jumped 2.6% to 579 pence after the U.K.-based real estate developer reported profit in the year ending in December tumbled 56.4% from a year ago to £317 million and net rental income jumped 8.8% to £346.5 million.

Royal Bank of Scotland Group Plc soared 6.4% to 257.60 pence after the U.K.-based banking and financial services provider agreed with the U.K. Treasury and European Commission to abandon the sale of Williams & Glyn to meet European Union state aid demands.

Earlier the lender said none of the proposals to acquire the business received by RBS can deliver a full separation and divestment before December 31 2017 deadline. As it is """"difficult and complex"""" spin-off more than 300 branches under the name of Williams & Glyn.

""""Today''s proposal would provide a path to increased competition in the small and medium enterprises market place,"""" chief executive officer Ross McEwan said.

The bank scheduled to release its annual results on February 24.

SinnerSchrader AG surged 15.1% to €9.15 after the Ireland-based professional services provider Accenture Plc agreed to buy 62% stake in Germany-based digital products and services provider from co-founder Matthias Schrader and chief financial officer Thomas Dyckhoff and other shareholders for €9 per share.

The transaction is expected to close in the first-half of this year.