British pharmaceutical companies’ shares fall on Democrat victory

Shares in British pharmaceutical companies have fallen following the US mid-term elections, which saw the Democrats take control of the House of Representatives and the Senate.

AstraZeneca shares have slipped by 2.37 per cent today, down to 31.62 pounds, and GlaxoSmithKline has fallen by 1.64 per cent, although shares in Shire remain unchanged.

The Democrats taking control of both houses of the US executive has sparked fears over legislation and regulatory stringency, which could hit sales from British pharmaceutical countries operating in America.

One trader told Reuters: “The pharmaceuticals industry has always done better and Medicare legislation has been less stringent under Republicans than Democrats.”

“The result for the industry is not as good as if the Republicans had a hold on at least one of the Houses,” he added.

AstraZeneca’s stock in particular has suffered from a reduction in valuation in recent times amid concerns over its product pipeline.

Last month, the company announced that one investigational drug, NXY-059, had failed to show sufficient efficacy in clinical trials.

However, earlier this year, chief executive David Brennan announced a plans for a new strategy to help rebuild the company’s product pipeline and speed up the research and development process.