News of a setback in winning European Union approval for an important drug sent Novartis sharply lower in Zurich. The Swiss group and its US marketing partner, Bristol-Myers Squibb, withdrew their Zelmac drug from the EU regulatory review process after a disagreement over clinical results for the treatment.
Novartis said it was studying options for resubmitting the drug, which treats irritable bowel syndrome and is one of five key products the company was planning to launch this year.
The shares lost 4.6 per cent at €68.25 in spite of the company's insistence late yesterday that it was sticking to its forecast that drug sales growth would match the industry average this year and beat it in 2002.
Roche, meanwhile, edged up 0.6 per cent to SFr135.50 (€89.13) after Mr Franz Humer, the chairman, denied rumours, made late on Wednesday, that the healthcare group had revised its guidance on earnings.
Allianz was a top performer among financials as it promised investors billions of euros in savings and future revenues from its €23 billion takeover of Dresdner Bank. Allianz put on 3.9 per cent to €331.39 and Dresdner climbed 2.9 per cent to €52.25.
The group's upbeat announcement coincided with news that co-operation talks between Deutsche Bank and Axa, Europe's number one insurer, had broken down, leaving Germany's top bank without an insurance ally. However, Axa insisted late yesterday that the talks had been suspended and not terminated. Axa was 0.7 per cent ahead at €33.50 while Deutsche Bank edged 0.2 per cent higher to €90.60.
Deutsche Telekom provided a gleam of sunshine on another dreary day for telecoms operators, rallying strongly as the group's takeover of VoiceStream in the US went through on what were perceived as vastly improved terms. The shares hit a high of €25 before subsiding to €24.08, up 1.1 per cent. In contrast France Telekom fell a further 1.2 per cent to €65.
