AZ finds itself on the sick list

SHARES in drugs giant AstraZeneca bounced back having slumped to a 19-month low earlier today as US regulators formally blocked the launch of its new blood-thinning treatment Exanta.

AZ said it had received a letter from the US Food and Drug Administration detailing a decision not to approve the drug. It is now 'considering how to proceed further'.

The shares recovered from a drop of 9p this morning to stand currently 7p up at 2172p. But the share-value of the company has still taken a considerable dent since doubts over Exanta were first voiced by the FDA last month.

AZ has been developing the drug for 20 years with the aim of preventing blood clots after knee and hip replacement surgery, as well as the blood pooling that leads to strokes.

Analysts believe it could have generated annual sales of $1.5bn (£855m) but the FDA's decision means AZ will have to focus on the far less lucrative European market, where it has approval in a handful of countries but not yet the UK.

FDA concerns are believed to centre on liver problems thought to be a side-effect.

Last week, AZ chief executive Sir Tom McKillop said US regulators had misjudged the 'huge medical need' for the treatment.