Sept. 27 (Bloomberg) -- Orion Oyj reached its highest in six weeks in Helsinki trading after Jefferies International Ltd. said the Finnish drugmaker may boost investor optimism with positive results from its prostate-cancer treatment.
The shares gained as much as 2.1 percent to 18.54 euros, the highest level since Aug. 15. Orion traded 1.9 percent higher at 18.51 euros at 1 p.m. in the Finnish capital. Volume traded was 54 percent of the three-month daily average.
Positive results from the prostate-cancer medicine ODM-201 phase II study data this weekend “could cause renewed longer-term investor optimism,” James Vane-Tempest and Chris Cooper, London-based analysts at Jefferies, wrote in a note to clients. Orion’s strategy to allow an authorized partner to start selling generic entacapone drug to treat Parkinson’s disease is “sensible” as its patents expire in the European Union next month, the analysts said.
Jefferies raised its recommendation on Orion to hold from underperform and increased its 12-month price estimate by 3.1 percent to 16.50 euros. That boosted the average price estimate of eight analysts to 17.81 euros, the highest since Aug. 1, according to data compiled by Bloomberg.
Analysts may upgrade their profit estimates after Orion updates its strategy and pipeline prospects at an investor meeting on Nov. 20, Vane-Tempest and Cooper wrote.
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