Algeta ASA was the biggest gainer in Oslo’s benchmark OBX index after Edison Investment Research Ltd. predicted the Norwegian developer of a prostate-cancer drug would become a “fully fledged commercial presence.”
Algeta rose as much as 3.8 percent and was up 2.7 percent to 150.5 kroner as of 1:53 p.m. in Oslo, the largest gain in the OBX index.
“Alpharadin looks set to become a standard of care in metastatic castration-resistant prostate cancer,” Jacob Plieth and Robin Davison, analysts with London-based Edison Investment, said in the report.
Algeta is developing Alpharadin with Leverkusen, Germany-based Bayer AG. The drug emits radioactive alpha particles that kill cancer cells in patients’ bones. It plans to present the treatment for regulatory approval in mid-2012, the Oslo-based company said this month. Algeta said last year that it has an option in its agreement with Bayer to participate in the promotion of the treatment as well as earnings in the U.S.
The events will see Algeta become “a business with a fully fledged commercial presence,” the analysts said. They value the company at 10.8 billion kroner ($1.95 billion) on a risk-adjusted net present value basis. Algeta has a market capitalization of 6.1 billion kroner.
Algeta sold 260 million kroner in shares earlier this month to fund commercial operations in the U.S. for the introduction of Alpharadin and to pay for research and fund working capital, spending and general costs, the company said.