LONDON (Alliance News) - London stock indices have started higher Tuesday, with shares in Irish drugmaker Shire gaining after US Food & Drug Administration approved its Xiidra dry eye treatment.
The company said late on Monday that Xiidra is the only prescription eye drop indicated for the treatment of both signs and symptoms of dry eye disease, and it anticipates it will launch in the US in the third quarter of 2016.
"As Shire's first FDA-approved medicine in ophthalmics, this significant milestone advances our goal of becoming the global leader in this category, where there are unmet patient needs. We have a robust ophthalmics pipeline, and we look forward to leveraging Xiidra as our entree into the space as we continue to develop additional innovative eye care treatment options," said Flemming Ornskov, Shire's chief executive.
Shire shares were up 3.3% early Tuesday.
The FTSE 100 had been called lower before the open, but was up 0.1%, or 5.84 points, at 6,688.70. Again it was housebuilders and banks supporting the large-cap index.
The FTSE 250 was up 1.0% at 16,876.37 and the AIM All-Share was up 0.6% at 719.42.
In Europe, the CAC 40 in Paris and DAX 30 in Frankfurt both were up 0.7%.
In Asia, the Shanghai Composite ended up 1.8%, and the Hang Seng in Hong Kong continues up 1.6%. The Nikkei 225 index in Tokyo made more strong gains on Tuesday, closing up 2.5%. This means the index is up 6.5% so far this week.
The Tokyo market was boosted by news that Japanese Prime Minister Shinzo Abe will order his cabinet to compile economy-spurring measures, following the ruling coalition's victory at the weekend in upper house elections.
Elsewhere in London, ITV shares were given a boost, trading up 3.3%, after UBS raised the broadcaster to Neutral from Sell. However, Vodafone Group was down 1.9%, the biggest faller in the blue-chip index, after Citigroup cut the mobile telecommunications company to Neutral from Buy, according to traders.
In the FTSE 250, construction and housebuilding company Galliford Try was up 6.1% after it said it expects to post full-year results in line with management's expectations.
Within its Linden Homes housebuilding arm, the company said it made 3,078 completions during the year, compared to the 2,769 recorded a year earlier, and noted its average private sales price rose to GBP335,000 from GBP327,000. Its forward sales position grew 27% at the year-end to GBP380.0 million, up from GBP300.0 million a year earlier, Galliford Try said.
Galliford Try noted that it was well positioned in the wake of the UK's vote to leave the European Union. "Recent political events create a backdrop of uncertainty for the new financial year. It is too early to predict specific effects on our markets, but the strength of underlying demand for new homes and the continuing availability of mortgage finance and Help-to-Buy give grounds for confidence in both Linden Homes and Galliford Try Partnerships," said Chief Executive Peter Truscott.
Veterinary pharmaceuticals company Dechra Pharmaceuticals said trading in the year to the end of June was strong, with robust revenue growth boosted by acquisition contributions.
FTSE 250-listed Dechra said revenue growth including acquisitions in the year to June 30 was 21% at both constant and actual currencies. Excluding acquisitions, revenue grew 11%, the company said. European revenue was up 3.0% and up 5.0% in constant currencies, dragged by the weakness of the euro, but North American revenue surged 45% at actual currencies and 37% at constant currencies, helped by the strong dollar.
Dechra said the integration of its clutch of acquisitions made in the year has progressed in line with its expectations, providing a good platform for future growth. The stock was up 4.0%.
Oil and gas explorer Premier Oil said it anticipates production in 2016 will be at the upper end of its previous guidance and said operating expenditure in the first half came in below budget.
The company, which was up 6.1%, said production in the six months to the end of June was 61,000 barrels of oil equivalent per day, with recent rates hitting around 80,000 boepd. For 2016 as a whole, the group anticipates production will come in at the upper end of its guidance of 65,000 to 70,000 boepd.
Premier said the Solan field in the North Sea is ramping up from the P1 well and said the P2 well has been completed and successfully tested, meaning it will be tied into production from the field imminently. The Catcher project, also in the North Sea, is on schedule and further cost reductions have been secured, Premier said.
Still ahead in the economic calendar, Bank of England Governor Mark Carney and colleagues will be speaking before the Treasury Select Committee at 1000 BST. At noon the Bank of England publishes its quarterly bulletin. and Redbook retail sales data in the US come at 1355 BST.
By Neil Thakrar; neilthakrar@alliancenews.com; @NeilThakrar1
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