FTSE falls amid drug stock fears

Bad news for drugs stocks on both sides of the Atlantic injected negative sentiment into the London market today.

AstraZeneca lost nearly £3bn (€4.3bn) of its value after announcing a key product in its pipeline had failed to boost survival chances for some patients.

This contributed to the FTSE 100 Index ending the week below the 4700 barrier - 38.4 points lower at 4696.8.

New York’s Dow Jones Industrial Average was 40 points in the red by closing time in London after drug maker Pfizer said research showed its painkiller drug increased the risk of heart problems.

In London, worries about lung cancer treatment Iressa caused AstraZeneca to weaken 8%, down 170p to 1886p, while rival GlaxoSmithKline was also dragged lower with a fall of 26p to 1170p.

Cairn Energy was the heaviest faller – losing 18% or 247p to 1115p – after a disappointing appraisal on a potential extension to its development site in north west India.

The highest Footsie risers today were Enterprise Inns up 15p to 752p, Smiths Group rising 15p to 802p, Wolseley up 17p to 948.5p and Schroders NV rising 11p to 680p.

The heaviest fallers were Cairn Energy down 247p to 1115p, AstraZeneca off 170p to 1886p, Smith & Nephew down 14p to 524p and GlaxoSmithKline off 26p to 1170p.