AstraZeneca shares rocket higher

The development of drugs is a high-cost business

AstraZeneca's share price has soared by 9% as it gained approval to sell a best-selling drug in the world's biggest market.

The jump in share price comes despite an overall decline on the London's key FTSE 100 index which closed at its lowest level since April 2000.

And AstraZeneca was the index' biggest gainer of the day.

The pharmaceuticals firm has finally won approval to launch Nexium in the US, a drug which drew in revenue of $17m (£11.8m) in Europe last year.

Nexium is the successor to best-selling ulcer drug Losec which clocked up global sales of $6.3 billion last year.

Cash-puller

Losec is now nearing the end of its patent lifestyle, and Nexium will go part of the way to plugging the gap in AstraZeneca's revenue.

In October, the company warned that the decline of Losec would hamper its double-digit growth target.

The Anglo-Swedish drugs firm expects to launch Nexium in the third week of March following the go-ahead from the Food and Drug Administration.

Nexium is already on sale in Europe, and drew in sales of $17 million last year.

A long delay in approval from the US had weighed heavily on AstraZeneca's share price over the last three months.

AstraZeneca's share price closed at £31.35, 8.9% higher than the previous close of £28.80 on the London stock exchange.