Oct. 11 (Bloomberg) -- Genmab A/S, the Danish biotechnology company developing cancer drugs, rose the most in 10 months after European and Australian regulators backed an experimental product for quick review and Danske Bank resumed coverage.

Genmab gained 26 kroner, or 7.6 percent, to 369 kroner in Copenhagen trading. The stock has fallen 2.9 percent this year.

Health-care authorities have granted so-called orphan status to HuMax-CD4, the company said in a statement to the stock exchange. That may speed the review and give the medicine some market exclusivity. In a report issued today, Danske Bank set a six-month price target of 550 kroner, analyst Thomas Bowers said in a telephone interview.

Five hundred fifty kroner ``is quite a high target price compared to where the price is right now. That would definitely drive it. Plus the good news from this morning,'' Rune Dahl, an analyst at Sydbank, said in a telephone interview. After Genmab regained the rights to HuMax-CD4, investors ``might have been less confident about the drug,'' he said.

Genmab regained all marketing rights to the experimental drug in June from Merck KGaA which had first acquired them in August 2005. In August, Merck returned the rights to HuMax-TAC, an experimental treatment for organ transplant rejection. Genmab said then Merck had returned the rights after reviewing its drug portfolio.

Genmab said today that Australian authorities had granted orphan drug status for HuMax-CD4's use to treat refractory cutaneous T-cell lymphoma, and that European authorities granted the status for the drug's use against refractory nodal T-cell lymphoma. As a result, Genmab may not face competition for 10 years if the product comes to market in Europe.

A redesign of the clinical trial of HuMax-CD4 to treat refractory cutaneous T-cell lymphoma would allow the company to more quickly enroll patients and broaden the illnesses for which the drug might be used, Genmab said.

``A further step to recovery in sentiment,'' Richard Parkes, analyst at PiperJaffray, said today in a note to investors. ``Genmab's shares have suffered a weakening in investor sentiment during the last few months given delays to its three pivotal clinical programs (HuMax-CD4 in CTCL, HuMax-CD20 in CLL and NHL). As such, today's announcement represents a further step in reassuring investors that all three programs will be in a position to report data in 2008.''

To contact the reporter on this story: Frances Schwartzkopff in Copenhagen at fschwartzkop@bloomberg.net

Last Updated: October 11, 2007 11:38 EDT