AstraZeneca crowned UK’s first £200bn company as push to develop new cancer drugs bears fruit

AstraZeneca has become the first UK company to be valued at £200bn after its ambitious drive to develop a line of cancer drugs came to fruition.

In another boost for chief executive Pascal Soriot, as well as an army of investors, shares in the pharmaceutical giant rose 1.1 percent, or 140 pence, to a record close of 12,920 pence.

That gave it a market capitalisation of £200.3bn, well ahead of Shell at £175bn. Only two other London-listed companies are worth more than £100bn: HSBC at £119bn and Unilever at £118bn.

But the two biggest US companies, Apple and Microsoft, are each worth more than $3tn (£2.3tn).

Analysts said the milestone represented a “pat on the back” for Soriot, whose value has more than tripled since he took over in 2012.

Soriot, 64, turned down an unwanted takeover bid from US rival Pfizer in 2014 but has also pioneered new treatments.

The group not only provided millions of life-saving COVID-19 vaccines during the pandemic, but also boosted its drug pipeline, especially in oncology.

Last month, the company raised its annual sales and profit forecasts due to strong demand for its treatments for cancer, rare diseases and heart disease.

Danni Hewson, head of financial research at stockbroking firm AJ Bell, said: “Astrazeneca’s growth has been steady rather than flashy, the tortoise rather than the hare, but Covid has given us a new respect for pharmaceutical giants.”

In April, shareholders approved a deal that could take Soriot’s total pay since taking over to more than £150m.