Pharma shares rocket on mega M&A deals

GlaxoSmithKline, the UK's largest pharmaceutical group, and rival AstraZeneca, saw shares jump sharply - with the latter up 10% - as a series of deals in the sector boosted prices.

Glaxo saw shares jump 4.7% when markets opened after it agreed to sell one of its businesses to rival Novartis, in a deal which will see it return billions of pounds to shareholders. But it was rival AstraZeneca which really rocketed, shares jumping 9.7% initially, after reports US rival Pfizer - a much larger company - will bid £60bn for the group. Britain's second-largest drugs maker is expected to do all it can to withstand any approach. Glaxo's gains seem the more sustainable after the group - a favourite holding of many income funds in the UK - today announced it had sold its ...