Big Celltech boost on hopes of US bid

CONFIRMATION at the agm that Peter Fellner is stepping down as chief executive of drug developer

The two know each other well and are said to have held friendly discussions last year. Nothing came of them, but analysts now believe Fellner's transfer to replace non- executive chairman John Jackson will lead to renewed talks which this time should bear fruit.

Celltech last month signed a collaboration deal with Biogen for its Crohn's disease drug Humicade.

Biogen's big-selling multiple sclerosis drug Avonex is facing stiff competition from recently approved rivals. This puts enormous pressure on the rest of its portfolio, which analysts consider to be weak. Swallowing Celltech would solve the problem.

Meanwhile, Celltech said turnover for the four months to end-April is ahead of budget and it remains comfortable with market expectations for 2002. It intends to find a replacement chief executive before the end of the year. Teather & Greenwood rates the stock a strong buy.

Oxford Glycosciences touched 410p on the appointment of David Ebsworth as chief executive, but soon ran into profit-taking and ended 2 1/2p easier at 370p.

Ebsworth, who was global head of pharmaceuticals at Bayer, starts on July 1. He is a big noise in the drugs field and a definite coup for OG. However, Altium Capital says his appointment removes the one potential reason to buy the stock - the possibility of a bid.

Altium says sell. If OG's Vevesca drug fails to win regulatory approval this summer, the stock could fall to 260p. Last month, the company suspended clinical trials of the drug, used for the treatment of a genetic disorder, after a patient developed a neurological problem.

Shire Pharmaceuticals gained 9 3/4p to 645 1/4p after a brace of brokers upgraded on hearing that the US Food & Drug Administration had approved three further strengths of Adderall XR, its once-a- day treatment for hyperactivity.

A dire trading statement left Provalis 3 3/4p down at 7 3/4p. Sales for the fourth-quarter ending 30 June are likely to be 20% below expectations.

The Footsie was in better health, closing 23.4 points higher at 5175.3. Dealers were impressed with the strength of US durable goods orders for April. They rose for the fifth consecutive month by a much better than expected 1.1%, allaying fears of an early rise in US interest rates. Wall Street lost an initial 27-point gain to trade 46 down.

Optimism ahead of Tuesday's annual results helped mobile phone giant Vodafone firm 4 1/2p to 110 3/4p. mmO2, which also reports next week, edged up 1 1/2p to 46 1/2p. British Telecom improved 5p to 285p after stating that it has no intention of bidding for Colt Telecom, 4 1/2p down at 45 3/4p.

Strong buying in the wake of bullish noises by JP Morgan's top-rated team of analysts lifted Bats 20 1/2p to 790p, Imperial Tobacco 27p to 1079 1/2p and Gallaher 24p to 627 1/2p. JP's numbercrunchers reckon European tobacco shares offer significant upside potential and the declining global litigation risk is not yet fully reflected in prices.

Interregnum, the UK investor in technology start-up, crashed 9p to 3 1/2p after warning that it will not make any money from fund management fees this year. It will also have to set aside £3.9m for potential writeoffs on its investment portfolio.

Aim-listed e-primefinancial rose 3/4p

to 3 3/4p after finally receiving a US banking licence from the Office of the Comptroller of the Currency.

Infinity Bank NA will have its headquarters in Palm Beach County, Florida.

Hopes of upbeat news soon on its Sappes Gold project in Greece lifted Greenwich Resources 3/4p to 3p in heavy turnover of 3.9m.

Italian-style coffee bar group Cafe Nero frothed up 2 1/2p to 29p following bullish presentations to institutional investors.