Clinton clampdown is headache for drug firms
Pharma firms were dragged lower amid talk of a Clinton clampdown on the drugs industry in the US.
hillary Clinton, the Democratic nominee for the country’s presidential elections in November, has long been vocal on her plans to shake-up the pharmaceutical sector. Last year she slammed one company which bought the rights to a drug used in hIV treatment and then hiked the price by 5,000pc. Clinton called the practice ‘outrageous’ and vowed to take it on.
This week the prospective future president called for the price of the allergy drug EpiPen to be lowered after it was revealed it is four times more expensive than a decade ago.
her strong stance on the industry sent shares spiralling as investors feared what pricing pressure could mean for profits. Hikma Pharmaceuticals was the greatest blue chip faller of the day as the FTSE 100 dipped 0.28pc, or 18.88 points to 6,816.9. It was the second day in the red for the firm after a disappointing update on Wednesday, and a two-month low for the stock. Shares slipped 3.5pc, or 78p, to 2150p. slumped 2.45pc, or Shire 123p to 4902p. Elsewhere in the sector, Spire Healthcare rose as it revealed profits were up 15.9pc. The independent hospital group reported profit after tax of £35.7m in the six months to June 30, up from £30.8m in the same period a year ago.
revenue climbed 4.4pc to £469.5m. Spire has also seen the number of in-patient and day admissions climb 2.5pc to 139,800 in the first half of the year. But an increase in spending meant net debt climbed slightly to £422.6m.
The group has opened two new operating theatres in the first half of the year with four more under construction. Work on new hospitals in manchester and Nottingham is progressing and they are on track to complete in the first quarter of 2017. Spire, which will maintain its interim dividend at 1.3p a share, says its guidance for the year is unchanged.
Executive chairman Garry Watts said while it was unclear how Brexit will affect the sector, NhS funding constraints will continue to put pressure on waiting list targets, which presents an ever-increasing opportunity. Shares advanced 2.74pc, or 9.4p to 352.4p.
Air Partner flew higher on a preclose trading update, which revealed pre-tax profit for the first half of the year is expected to be not less than £3m. That compares with £2.2m in the same period a year ago.
The global aviation services group said its training and consultancy division had won new contracts in the first six months of the year, while like-for-like performance in its broking division was strong. Liberum said it was an encouraging update and suggested an improvement in profit of at least 36pc. Shares soared 2.1pc, or 8.62p to 423p. Business-to-business media firm
Ascential, which organises exhibitions and festivals, and provides business intelligence, announced the acquisition of One Click retail.
The company is a US-based ecommerce analytics provider, whose customer base includes Unilever, Nestle and Panasonic. Founded in 2013, the business delivered revenue of £3.7m in 2015. The deal was for an initial £33.4m and is expected to complete by the end of the month. ascential stumbled 1.1pc, or 2.9p to 265.5p.
Irish house builder Cairn Homes rose as it reported revenues of £13.7m in the first half of the year and pre-tax profit of £400,000. The firm, which listed on the stock market in June last year, now has a land bank of 27 sites which it plans to develop into more than 11,500 units.
It is active on five sites, which will deliver around 1,150 units. Development on five more sites should begin within the next 12 months. Some 112 houses have now agreed sales with 39 completing in the first six months of the year. It said its gross profit margin is 16.5pc.
Cairn said supply continues to fall well short of the long-term requirement. Shares gained 1pc, or 0.01p to 1.04p.