Europe shares extend gains; pharma, oil stocks up

FRANKFURT, May 16 (Reuters) - European shares extended gains in early trade on Friday, as pharmaceutical stocks rose after positive data for a Sanofi-Aventis (SASY.PA: Quote, Profile, Research, Stock Buzz) heart drug, while energy shares powered higher as oil neared $125 a barrel. By 0817 GMT, the pan-European FTSEurofirst 300 index was up 0.5 percent at 1,367.22 points, rising for a third consecutive session. The index had gained about 1.3 percent so far this week.

Oil majors such as Total (TOTF.PA: Quote, Profile, Research, Stock Buzz), BP (BP.L: Quote, Profile, Research, Stock Buzz) and Royal Dutch Shell (RDSa.AS: Quote, Profile, Research, Stock Buzz) rose as the oil price CLc1 neared $125 a barrel.

Sanofi-Aventis shares rose 3.2 percent and were the strongest positive weight on the FTSEurofirst index.

Scientists said on Thursday patients with a common heart arrhythmia are less likely to end up in hospital if given Sanofi-Aventis's experimental drug Multaq.

Tech stocks were stronger, tracking their U.S. peers, which rose on a battle to control Yahoo (YHOO.O: Quote, Profile, Research, Stock Buzz). Nokia (NOK1V.HE: Quote, Profile, Research, Stock Buzz) and Siemens (SIEGn.DE: Quote, Profile, Research, Stock Buzz) rose around 2 percent each.

(Reporting by Eva Kuehnen)