Orexo Jumps as Cancer Drug Alone Makes Up Value: Stockholm Mover
Orexo AB (ORX) rose the most in 13 months in Stockholm trading after a business magazine recommended investors buy the stock because the Swedish biotech company’s cancer pain medicine alone is worth the market value.
Orexo rose as much as 13 percent, the biggest gain since Jan. 10, 2011. The stock rose 2.30 kronor, or 9.8 percent, to 25.80 kronor as of 3:11 p.m., local time.
Magazine Affarsvarlden, which said it normally avoids recommending biotech shares because of the risks involved, said it will make an exception for Orexo because the company already has four products on the market. In addition to cancer pain medicine Abstral, the Uppsala, Sweden-based company has licensed sales of sleep medication Edluar and two products for diagnosing gastric ulcer bacteria. Orexo also sold the sales rights for a rhinitis treatment to Meda AB (MEDAA) in 2008 and will receive a $15 million payment on U.S. marketing approval.
“If Abstral faces the harvesting time that most signs point toward, the company’s market value can be justified based on that medicine alone,” Affarsvarlden said today. “The rest of the company is then effectively valued at nothing.”
The rhinitis treatment is currently awaiting final test studies conducted by Meda.
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