Egis Nyrt., the Hungarian drugmaker owned by Laboratoires Servier, jumped to the highest in more than a week after getting European Commission approval for the sale of its Remsima drug.
The shares rose as much as 2.9 percent and closed up 1.5 percent in Budapest trading at 20,600 forint, the highest since Sept. 3. Egis was the biggest gainer in the 13-member BUX index, which rose 0.7 percent. The stock climbed 3 percent in the week, the most since the five days through June 28.
Remsima, used to treat autoimmune diseases, is one of eight products the company acquired the right to sell under an agreement with South Korean partner Celltrion Inc. Egis will sell it in central and eastern European countries including Hungary, Poland, Romania and the Czech Republic, according to a statement to the Budapest Stock Exchange today.
“The move is positive” and will boost Egis’s operating profit, Attila Vago, a Budapest-based equity analyst at Concorde Securities, Hungary’s largest brokerage, said by phone. “Egis is one of the most undervalued shares on the market now.”
Concorde has an overweight recommendation on Egis, with a price target of 26,000 forint. All eight analysts tracked by Bloomberg recommend buying the stock.
Egis trades at 8.6 times earnings for the past 12 months, the lowest ratio among seven eastern European pharmaceutical companies, according to data compiled by Bloomberg.