It is just weeks after Irish drug maker Shire announced its $5.2 billion (£3.46 billion) swoop for NPS Pharmaceuticals but the deal looks like it’s already paying off.
Natpara, one of the New Jersey-based company’s drugs which is used for treating a rare hormone disease, has been approved by the US Food and Drug Administration.
The rubber stamp carries only a few warnings and restrictions, which analysts say means the drug could sell to its full potential.
Accendo Market head of research Mike van Dulken said: “With NPS having previously indicated that the drug could be available as soon as the second quarter of 2015, the news adds weight to Shire’s tie-up with NPS in order to help accelerate growth.”
Jefferies added: “This positive outcome validates management’s calculated risk acquiring NPS only weeks ahead of this critical event”.
Shire soared 146p to 4963p — its best price in three months but short of the 5455p high reached in October before AbbVie pulled out of a takeover.
After opening lower amid uncertainty around the situation in Greece, the FTSE 100 inched 6.5 points higher to 6839.33.
There is reluctance to see the index go much above the four-month high reached on Friday.
Miners knocked 11.05 points off the index as commodity prices continued to flag.
The price of oil also dipped below $48 a barrel in early trade, more bad news for producers.
Tullow Oil fell 11.6p to 359.85p, BG Group 14.4p to 877.4p and BP 5.8p to 426.55p.
A drop in natural-gas prices has left power-station operator Drax with a headache.
Credit Suisse slashed its price target from 750p to 430p today, reflecting the 12% fall in power prices in just the last six weeks. Drax slipped 11.7p to 362.7p.
A restructure of its American operation and a return to hiring in many industries helped recruiter SThree post a 40.9% rise in pre-tax profit for the year, as revenue jumped 20.8%. SThree rose 1.25p to 332.87p.
Filter maker Porvair rose 13p to 306.12p thanks to a 10% jump in profit to £8.4 million and a 23% leap in revenue to £104 million.
The company also announced three new contracts to provide spare parts, worth $5.5 million.
