The FTSE 100 underperformed its European counterparts on Thursday, weighed down by a steep decline in pharmaceutical giant AstraZeneca (AZN.L).
AstraZeneca shares tumbled 6.2%, shedding 886p to close at 13,354p, after the company revealed its cardiovascular drug Wainua failed to meet its primary endpoint in a phase three clinical trial.
Wainua, whose generic name is eplontersen, was being tested in patients with transthyretin-mediated amyloid cardiomyopathy in partnership with Ionis Pharmaceuticals (IONS).
The drug did not meet its primary efficacy endpoint in terms of mortality or cardiovascular clinical events up to 140 weeks, compared to a placebo.
Jefferies analyst Michael Leuchten said: “The failure does put (net present value) at risk of course, but the bigger issue is probably a degree of credibility loss with management being very confident in the trial’s ability to hit the primary endpoint.”
JPMorgan analyst Richard Vosser anticipates market consensus to remove the majority of the 3.3 billion US dollars risk-adjusted peak sales forecast for the drug.
The FTSE 100 closed down 16.59 points, or 0.2%, at 10,472.45, as AstraZeneca’s position as the second-highest weighted firm in the index amplified the damage.
The FTSE 250 fared considerably better, ending up 222.92 points, or 1.0%, at 23,240.56, while the AIM All-Share rose 4.18 points, or 0.6%, to 762.25.
Mining stocks provided some relief as metal prices rallied strongly, with Anglo American climbing 5.8%, Antofagasta rising 5.4%, and Glencore advancing 4.2%.
Gold traded at 4,126.64 dollars an ounce on Thursday, up from 4,022.15 dollars on Wednesday, while silver gained 3.5% and copper rose 2.7%.
European markets outpaced London, with the CAC 40 in Paris and the DAX 40 in Frankfurt both ending the day up 0.9%.
In New York, the Dow Jones Industrial Average was up 0.3%, the S&P 500 gained 0.6%, and the Nasdaq Composite climbed 0.7%.
PepsiCo fell 3.5% after reporting mixed second-quarter results, with organic revenue growth of 2.4% falling below the 2.6% consensus, even as earnings per share beat forecasts.
Brent crude for September delivery eased to 77.03 dollars a barrel, down from 80 dollars on Wednesday, despite renewed fighting between the US and Iran.
US President Donald Trump said he expected the latest military flare-up to end quickly and left the door open to more talks, also claiming Tehran wanted “to make a deal so badly.”
Kathleen Brooks, research director at XTB, said: “After spooking markets yesterday by saying the ceasefire with Iran is over, President Trump has now claimed that Iran wants to make a deal, although this has not been confirmed by Tehran.”
Computacenter rose 7.2% after the Hatfield-based technology services provider said it expects full-year adjusted pretax profit to come in “comfortably” ahead of market expectations of £313.7 million, up from £272.0 million in 2025.
On the FTSE 250, Playtech jumped 14% as the Isle of Man-based gambling software firm forecast adjusted earnings before interest, tax, depreciation and amortisation of 270 million euros, significantly above the current analyst consensus range of 205 million euros to 225 million euros.
Capita plunged 21% after warning of an up to £40 million adjusted operating profit hit this year due to failures at the civil service pension scheme contract, with chief executive Adolfo Hernandez saying: “We recognise the service on civil service pension scheme has not been good enough.”
Cambridge-based digital payments firm Bango soared 21% after reporting total first-half revenue expected at 25.9 million dollars, up 2.8% from 25.2 million dollars a year ago, with the company remaining confident of delivering full-year results in line with market expectations.