Basilea Pharmaceutica AG climbed the most in four weeks after the Swiss biotechnology company won a contract to develop an antibiotic from the U.S. Biomedical Advanced Research and Development Authority.
The stock rose as much as 5.7 percent, the biggest intraday increase since May 28, and was trading 4.7 percent higher at 67.1 francs at 11 a.m. in Zurich. Basilea shares have advanced 64 percent this year, valuing the company at about 644 million francs ($690 million).
BARDA, a division within the U.S. Department of Health and Human Services, awarded Basilea a contract for as much as $89 million for the development of BAL30072, Basilea’s novel monosulfactam antibiotic, the Basel, Switzerland-based company said in a statement today.
“Today’s news is positive, as the company’s pipeline receives further financial support for a drug from external source,” Andrew Weiss, an analyst with Bank Vontobel AG in Zurich with a hold rating on the stock, said in a note to customers.