AstraZeneca shares topple after drug blow

Pharmaceuticals giant AstraZeneca saw its share price fall sharply today after it emerged that a key drug in its portfolio did not boost the survival chances of some patients.

AstraZeneca said the trial of 1,700 lung cancer sufferers showed the treatment Iressa, which is not available in the UK, shrank tumours but not to an extent that significantly prolonged life.

Nearly £3bn (€4.3bn) was knocked off shares after the announcement, which came just a month after AstraZeneca suffered a setback on anti-cholesterol drug Crestor.

Around 210,000 patients in more than 30 countries including the US, Japan, Canada, Australia and Switzerland have already been treated with Iressa while it awaits full approval.

Chief executive Tom McKillop said he was determined to restore confidence in the company and today appointed a new director to bolster the development arm.

He said: “These recent disappointments, set in a more hostile environment towards pharmaceutical stocks, have resulted in a substantial loss of value.”

Patients using Iressa have been advised to carry on taking it and consult their doctor about ongoing treatment.

AstraZeneca has been testing the drug on cancer sufferers who have not benefited from one or more cycles of chemotherapy. Patients who did benefit included those of Oriental origin and those who had never smoked.

The company said there was “no methodological explanation” for the findings.