Orion Oyj (ORNBV) recouped some of the losses it sustained in Helsinki trading yesterday, when the shares dropped the most in four months, after Nordea Bank AB (NDA) said potential new products mean clients should buy the stock.
The Finnish drugmaker gained as much as 2.1 percent, the most in a week, in intraday trading. It declined 6 percent yesterday, the most since March 20. Shares in the Espoo, Finland-based company advanced 0.7 percent to 18.33 euros at 3:55 p.m. The volume of shares traded was 27 percent more than the three-month daily average.
“We see no grounds for the 6 percent share price plunge,” Nordea’s Helsinki-based analyst Sami Sarkamies wrote in a note to clients, raising his recommendation to buy from hold. Orion’s Alzheimer’s disease treatment ORM-12741 and prostate cancer medicine ODM-201 have potential for “significant announcements” this year, he said.
Orion is Europe’s least-favored drug stock among analysts amid concerns of generic competition to its Parkinson’s disease drug as patents expire, according to data compiled by Bloomberg. The company has the lowest recommendations on average in the Stoxx 600 Health Care Index, with 9 out of 13 analysts advising clients to sell, the data show.
Mylan Inc., based in Canonsburg, Pennsylvania, was authorized last week to make and sell generic versions of Orion’s proprietary Stalevo treatment for Parkinson’s as the companies settled a patent lawsuit.
The decline in Orion’s Parkinson’s drug sales in the second quarter was offset by growth in other areas, Nordea’s Sarkamies said. Orion’s performance and future partnerships mean the company may have room to raise its guidance this year, he said.
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