Genmab A/S (GEN) rose the most in 11 weeks after Nordea Markets said the biopharmaceutical company is moving closer to becoming profitable, repeating a strong recommendation that investors buy the stock.
Genmab surged as much as 7.8 percent, its biggest advance since May 30, and rose 7.5 percent to 183 kroner at 10:28 a.m. in the Danish capital. Trading volume was at 82 percent of the three-month daily average.
“Genmab is well on its way to sustained profitability,” Michael Novod, an analyst at Nordea Markets, said today in a note to investors. “We repeat strong buy with a 272-krone target.”
Genmab said it expects to lose less money this year than previously forecast amid a 10 million-krone ($2 million) increase in revenue and lower operating costs. The stock has been under pressure since Meditor Capital Management said in June it no longer holds any shares in the company.
“We are not concerned about the Meditor sell-out and believe it was over-interpreted by the market,” Novod said. The “25 percent setback gives a new attractive entry point,” he said.
Genmab said yesterday it expects an operating loss from continuing operations of 10 million kroner to 75 million kroner. That compares with a March forecast for a loss of as much as 90 million kroner.
To contact the reporter on this story: Frances Schwartzkopff in Copenhagen at firstname.lastname@example.org