Egis Snaps 5-Day Drop on Positive Trial Results: Budapest Mover

Egis Gyogyszergyar Nyrt. (EGIS), a Hungarian drugmaker owned by Laboratoires Servier, ended a five- day decline after announcing positive clinical trial results for a rheumatoid arthritis treatment.

The shares gained as much as 1.8 percent to 14,250 forint and were trading at 14,100 forint as of 10:03 a.m. in Budapest.

Clinical trials of a biosimilar medicine developed by South Korean partner Celltrion Inc. (068270) yielded positive results for the treatment of joint inflammation, Egis said late yesterday. The medicine is to be marketed by Egis in former Soviet states and 12 other countries in central and eastern Europe, according to the statement.

“This product could be among the first two products Egis will distribute from 2013 in the central and eastern European region,” Gergely Palffy, a Budapest-based analyst at KBC Securities, said in an e-mailed note to clients today. “The other is the biosimilar version of Roche’s Herceptin, a blockbuster with close to $5 billion in sales.” Palffy rates Egis shares a buy with a fair value estimate of 17,453 forint.

Egis signed an agreement with Celltrion in February 2010 to distribute eight biosimilar drugs developed and made by the Korean company in 17 East European and former Soviet Union countries.

To contact the reporter on this story: Edith Balazs in Budapest at ebalazs1@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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