AstraZeneca Jumps on Imfinzi trial; Richemont, Innogy, Vivendi Net Drop

Sarla Buch
12 May, 2017
New York City

AstraZeneca jumped on positive lung cancer drug trials. Richemont net plunged 46% and launched new program to buy-back up to 10 million shares. Innogy said its UK unit Npower is expected to generate loss this year. ThyssenKrupp lifted forecast.

[R]4:00 PM Frankfurt – AstraZeneca jumped on positive lung cancer drug trials. Richemont net plunged 46% and launched new program to buy-back up to 10 million shares. Innogy said its UK unit Npower is expected to generate loss this year. ThyssenKrupp lifted forecast.[/R]

In London trading, FTSE 100 index rose 28.55 or 0.4% to 7,415.25 and in Frankfurt the DAX index increased 27.87 or 0.2% to 12,740.48.

In Paris, CAC 40 index edged up 6.55 to 5,389.17.

For the week, FTSE 100 index jumped 1.6%, the DAX index rose 0.2% and the CAC 40 index slipped 0.8%.

[AstraZeneca Plc soared 8.4% to 5,144 pence after the U.K.-based biopharmaceutical said that in a trial immunotherapy drug Imfinzi lowered the risk of stage III lung cancer and the drugmaker is in talks with the regulators to submit the report after positive trial results.

""These are highly encouraging results and for whom surgery is not an option. We look forward to working with regulatory authorities around the world to bring Imfinzi to lung cancer patients as soon as possible,"" said chief medical officer Sean Bohen.

Compagnie Financiere Richemont SA declined 5.2% to 81.45 Swiss francs after Switzerland-based luxury goods maker said revenues in the year ending in March dropped 4% from a year ago to €10.6 billion.

Net income in the quarter plummeted 46% to from a year ago to €1.2 billion from €2.2 billion and diluted earnings per share slumped to €2.14 from €3.94.

The Cartier and Montblanc maker said gross profit fell 4% to €6.8 billion and gross margin decreased 40 basis points to 63.9% and operating profit declined 14% to €1.8 billion from a year ago period.

Separately, today Richemont announced a new program to buy-back up to 10 million ‘A’ shares through the market over the next three years.

Innogy SE fell 0.5% to €33.50 after Germany-based electricity and gas services provider reported net revenues in the first-quarter ending in March declined 7.2% from a year ago to €11.6 billion.

Net income in the quarter plunged 21.6% to from a year ago to €632 million from €806 million and diluted earnings per share were to €1.14.

The electricity and gas services provider had not provided the comparable diluted earnings per share figures for the same period a year ago.

Innogy said net debt as of March 31, increased 5% to €16.6 billion from a year ago period.

The utility services provider forecasted fiscal 2017 operating profit of about €4.4 billion and net income to jump 7% to €1.2 billion compared to the same period a year ago.

ThyssenKrupp AG slumped 3.4% to €21.52 after Germany-based diversified industrial product maker said net sales in the first-half ending in March rose 9% from a year ago to €21.1 billion.

Net in the period swung to a loss from a year ago to €871 million from profit of €37 million and diluted loss per share swung to €1.54 from diluted earnings per share of €0.07.

ThyssenKrupp said net loss in the quarter resulted on the losses linked to its Brazilian steel unit CSA to Ternium SA in the fiscal second quarter and the deal is expected to complete by September 30, 2017.

The steelmaker lifted operating profit forecast in fiscal year to about €1.8 billion from the earlier estimate of €1.7 billion.

Vivendi SA soared 5.1% to €19.32 after France-based media conglomerate said revenues in the first-quarter ending in March jumped 6.9% from a year ago to €2.7 billion.

Net income in the quarter tumbled 88% to €101 million from €862 million a year ago period and diluted earnings per share declined to €0.08 from €0.66.

Vivendi said decline in profit was impacted by the reversal of reserve related to the settlement of the Liberty Media litigation in the first quarter of 2016 in the United States for about €240 million.

Separately, the media company yesterday offered to acquire approximately 60% stake in it owns advertising group Havas SA at a price of €9.25 per share, a premium of 8.8% from the closing price of May 10 or €2.36 billion or $2.56 billion from chairman Vincent Bollore.

Mr. Bollore also controls Vivendi with a stake of more than 20%.

Havas SA stock surged 9.9% to €9.31.