Roche and AstraZeneca shares rise on Pfizer drug failure

Shares in both Roche and AstraZeneca have risen following the unexpected news that Pfizer’s investigational cholesterol drug, torcetrapib, has been withdrawn from clinical trials after regulatory authorities reported a higher incidence of mortality with the use of the drug.

AstraZeneca, which has lost 12 per cent of its share value in the last two months on back of its own product cancellations and disappointments, saw its shares rally to 29.07 pounds, up from 28.90 pounds.

Shares in Swiss pharmaceutical company Roche also increased in value upon the news of Pfizer’s loss as it is producing a drug that is similar to torcetrapib, according to Bloomberg.

AstraZeneca, the UK’s second-largest pharmaceutical firm, markets Crestor, a popular statin that would compete with the new Pfizer drug.

Philippe Gijsels, senior equity strategist at Forza SA’s private investment unit in Brussels, told Bloomberg: “AstraZeneca and Roche will clearly benefit and that is being translated into the stock price.”

AstraZeneca’s shares fell from a high of over 35 pounds in October after the company reported negative results for a crucial phase III study of its stroke treatment, NXY-059. The drug demonstrated a “lack of efficacy”, according to development partner Renovis. AstraZeneca has since cancelled development into the drug.

Pfizer shares are also expected to fall on the cancellation of torcetrapib when the stock markets open for trading in the US.