Active Biotech AB, a Swedish drug developer, extended yesterday’s gains in Stockholm and reached its highest value in 10 days after Pareto Securities ASA recommended buying the shares on the outlook for a multiple sclerosis treatment.
Active Biotech rose as much as 13 percent, reaching the highest intraday price since March 6 and adding to yesterday’s 24 percent gain. The stock traded 8.3 percent higher at 53.50 kronor as of 10:18 a.m.
Yilmaz Mahshid, an analyst at Pareto Securities, raised the recommendation for the shares to “buy” from “hold” and raised the target price to 65 kronor from 50 kronor, in a note to clients today.
Active Biotech and partner Teva Pharmaceutical Industries Ltd. yesterday said they plan to apply to the European Medicines Agency in the second half of this year for regulatory approval for multiple sclerosis treatment laquinimod.
“We believe Teva has undertaken a thorough review of the laquinimod file and thus believes the probability of receiving approval from the European Medicines Agency is high,” Pareto said in the note. The best-case scenario is an approval in the latter part of the first half of 2013, Pareto said.