AstraZeneca Falls on Cancer Drugs Trial Failure; LVMH and Dior Soar

Sarla Buch
27 Jul, 2017
New York City

AstraZeneca tumbled 16% after the company said its lung cancer trials failed to meet expectations. Christian Dior net surged. Diageo jumped on higher margin and buyback plan. Deutsche Bank profit surged but warned on revenue outlook. LVMH sales soared. Lloyds Banking set aside additional

[R]4:00 PM Frankfurt – AstraZeneca tumbled 16% after the company said its lung cancer trials failed to meet expectations. Christian Dior net surged. Diageo jumped on higher margin and buyback plan. Deutsche Bank profit surged but warned on revenue outlook. LVMH sales soared. Lloyds Banking set aside additional £700 million.[/R]

In London trading, FTSE 100 index fell 12.90 or 0.2% to 7,439.42 and in Frankfurt the DAX index dropped 78.52 or 0.6% to 12,226.55.

In Paris, CAC 40 index edged down 0.67 to 5,189.50. So

AstraZeneca Plc tumbled 16.2% to 4,282.92 pence after the U.K.-based biopharmaceutical drugs maker said a combination of two of its new oncology drugs failed to shrink lung cancer tumors in a closely watched clinical trial, a big setback with a much-awaited trial of a new lung cancer drug.

In the global study and in phase III, Mystic trial, the combination of two immuno-therapies failed to do better than chemotherapy to detect the growth of lung tumors.

The combination drugs were expected to help the U.K. biopharmaceutical leader in catching up with the other two immunotherapy leaders in treating lung cancer, Merck and Bristol-Myers.

Separately, AstraZeneca reported total revenues in the first-half ending in June declined 11% from a year ago to $10.5 billion.

Net income in the period soared 61.3% to $958 million from $594 million in a year ago six-month period and diluted earnings per share increased to 80 cents from 51 cents.

Christian Dior SA increased 0.8% to €246.60 after France-based consumer goods producer said sales in the first-half ending in June soared 15% from a year ago to €20.7 billion.

Net profit in the period surged 27% to €2.4 billion from €1.9 billion in a year ago six-month period.

The consumer goods producer said as of June 30, net financial debt declined 22% to €5.3 billion from €6.8 billion in the same period a year ago.

Diageo Plc soared 7.2% to 2,435.50 pence after the U.K.-based alcoholic beverage maker said revenues in the year ending in June jumped 15% from a year ago to £12.1 billion.

Net income in the year surged 19% to £2.7 billion from £2.2 billion in a year ago period and diluted earnings per share jumped to 106 pence from 89.5 pence.

The distiller announced to buy back shares worth up to £1.5 billion or $2 billion in fiscal 2018 and the spirit maker raise margin improvement target by fiscal 2019 to £700 million or 175 basis points.

Deutsche Bank AG plunged 4.3% to €15.89 after Germany-based banking and financial services provider stated sales in the first-half ending in June declined 10% from a year ago to €13.9 billion.

Net profit in the period surged to €1.04 billion from €256 million from a year ago six-month period and diluted earnings per share swung to €0.38 profit from diluted loss per share of €0.03.

The investment bank lowered full-year revenues forecast from the previous guidance of flat revenue but expects modest improvement in earnings.

Credit loss provisions in the second-half are likely to increase after unusually declining 62% in the first-half.

Revenues in bond-trading division tumbled 12% and provisions for possible future legal action declined to €2.5 billion and contingent liabilities slumped to €1.8 billion.

LVMH Moet Hennessy Louis Vuitton SE slipped 1.5% to €214.80 after France-based branded luxury goods maker reported sales in the first-half ending in June jumped 15% from a year ago to €19.7 billion.

Net profit in the period soared 23.5% to €2.1 billion from €1.7 billion in a year ago six-month period and diluted earnings per share advanced to €4.20 from €3.39.

Lloyds Banking Group Plc slumped 2.7% to 67.18 pence after the U.K.-based television producer and broadcaster said total revenues in the first-half ending in June advanced 4% from a year ago to £9.3 billion.

Net income in the period plummeted 12% to £1.6 billion from £1.9 billion in a year ago six-month period and diluted earnings per share fell to 2 pence from 2.3 pence.

The bank had set aside additional £700 million to cover payment protection insurance and will now cover reactive claims of about 9,000 per week through the end of August 2019. The Lloyds said it had set aside total of £18 billion.