Orexo Slumps on Affaersvaerlden Zubsolv Risks: Stockholm Mover
Stock Chart for Orexo AB (ORX)
Orexo AB (ORX) fell the most in more than a year in Stockholm trading after the Affaersvaerlden business magazine said it sees risks for disappointment when the company presents sales data for its Zubsolv medication this month.
The shares dropped as much as 8.8 percent to 114 kronor, their steepest intraday decline since Sept. 21 last year. The stock lost 8 percent to 115 kronor as of 11:44 a.m. local time, making it the biggest decliner among the 278 companies on the OMX Stockholm All-Share Index today. Trading volume was more than twice the daily average in the past three months.
Affaersvaerlden advised its readers to sell shares in Uppsala, Sweden-based Orexo, which plans to publish the first sales numbers for its opioid dependence medicine Zubsolv when it reports third-quarter earnings on Oct. 23. The market has priced in “sales success of almost biblical proportions,” Affaersvaerlden wrote in an analysis.
“There is no room for setbacks,” Affaersvaerlden said, advising readers not to buy the shares until they have fallen to 87 kronor. “The risk for disappointment is big when the first sales figures are presented.”
Orexo, which develops specialty pharmaceuticals, has more than doubled in value since the end of last year. It trades on an earnings multiple of 28 times projected 2015 earnings, Affaersvaerlden said.
Zubsolv was approved for the maintenance treatment of opioid dependence by the U.S. Food and Drug Administration in July.
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