Richter Rebounds From 6-Month Low on FDA Bid: Budapest Mover
Gedeon Richter Nyrt., Hungary’s biggest drugmaker, rebounded from the lowest level in almost six months after its U.S. partner, Forest Laboratories Inc. (FRX), applied to register a drug discovered by Richter.
The shares rose 0.3 percent to 35,665 forint, paring its decline this month to 12 percent. The benchmark BUX stock index in which Richter has a 19 percent weighting fell 1 percent today.
Forest submitted a new drug application to the U.S. Food and Drug Administration for cariprazine for the treatment of schizophrenia, Richter said in a statement to the Budapest Stock Exchange today.
The application to register Cariprazine is “positive” as it will soothe concerns on potential delays for the drug’s launch, Gergely Gabler, a Budapest-based analyst at broker Equilor Befektetesi Zrt., wrote today.
Equilor today started coverage of Richter at buy rating and a 12-month price target of 44,900 forint, according to a separate research report.
Richter plunged 6.1 percent in the past four sessions as it is the only Hungarian stock to be removed from the MSCI Inc.’s Hungary Index as part of a semi-annual review of the gauge’s members, effective Nov. 30, according to a statement on MSCI’s website on Nov. 14. The shares have retreated 12 percent since the announcement.
“We expect the selling pressure to ease in the coming days as we believe that market participants have almost completed portfolio rebalancing,” Gabler wrote.
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