SHARES in Manchester biotechnology company Tepnel Life Sciences rose 16 per cent after clinching a deal with pharmaceutical giant AstraZeneca.

Tepnel has been appointed preferred supplier to the drug maker for DNA extraction services.

The stock rose 16.33 per cent to 7.125p on the news.

Chief executive Ben Matzilevich said the link-up was a continuation of the good form Tepnel had shown in its 2005 financial figures.

" Client"

He said: "AstraZeneca is already a valued client that has been working with us for a number of years and this agreement is proof of the high level of client service and technical expertise that we are able to deliver."

Tepnel's results for 2005 saw a 33 per cent increase in turnover to é13.6m, while operating losses fell from é1.08m to é170,000.

* Shares in AstraZeneca fell 1.5 per cent after it scrapped development of late-stage diabetes drug Galida. It was in final Phase III clinical trials and was one of the company's biggest new drug hopes, though the group had always warned investors it was a risky project.

Shares in the company, which has over 5,000 staff in Cheshire, fell 1.5 per cent or 45p to 2929p.