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AstraZeneca (AZN), John Wood (WG.), Revolution Beauty (REVB) and UK house prices
Investors puzzled by a share price decline for AstraZeneca (AZN) in the available trading days over Christmas, will not be surprised to learn that the answer was buried in a Christmas Eve press release. This revealed the drug giant, along with its development partner Daiichi Sankyo (JP:4568), had voluntarily withdrawn the EU marketing application to the European Medicines Agency (EMA) for Deruxetan, an experimental precision drug for the treatment of locally advanced or metastatic non-squamous non-small cell lung cancer.
AstraZeneca decided to voluntarily withdraw the drug from consideration after the EMA reviewed the data and found that the results from the TROPION-Lung01 Phase III trial did not indicate significantly improved overall survival rates for patients. JH
John Wood completes Ethos Energy sale
John Wood (WG.) has completed the sale of its stake in Ethos Energy Group to One Equity Partners for a net consideration of $138mn (£110mn). The deal, which was first announced back in August 2024, is part of a divestment strategy aimed at hiving off non-core assets.
Wood owned 51 per cent of the Ethos Energy joint venture with its partner, Siemens Energy (DE:ENR). The company, a producer of rotating equipment such as turbines, contributed around $34mn to Wood Group’s adjusted cash profits in 2023. MR
Revolution settles with Chrysalis
Revolution Beauty (REVB) has reached a settlement with fund manager Chrysalis Investments (CHRY) that staves off the threat of legal action.
Chrysalis had begun proceedings against Revolution last year, blaming “misstatements and material omissions” in Revolution’s accounts for a loss it incurred through investing in the company’s shares.
It paid £45mn for a stake in Revolution in July 2021 and sold the shares for £5.7mn in late 2022 after auditor BDO revealed “serious concerns” around the company’s revenue recognition and bad debt provision, which led to it incurring significant losses.
Chrysalis said in April last year that it was seeking around £45mn from Revolution Beauty. Although the terms of the settlement are confidential, Revolution is paying a “non-material sum” to Chrysalis, which the latter said is “less than 1 per cent” of its current market capitalisation (of £600mn).
Revolution Beauty’s shares jumped by 15 per cent in early trading. House broker Panmure Liberum said the agreement “removes a significant risk” that had previously stopped potential investors from buying its shares, although the company is still being investigated by the Financial Conduct Authority. MF
House prices rise by 4.7 per cent in December
House prices finished the year on a high, up 4.7 per cent year on year in December, according to Nationwide’s house price index.
House prices rose the most in Northern Ireland where they were up 7.1 per cent. This was followed by the north of England, where prices rose by 5.9 per cent and the north-west by 5.5 per cent. London reported a 2 per cent increase, slightly below inflation.
Nonetheless, house prices are still 1.6 per cent below the highs recorded in summer 2022. NV
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