Richter Rises to Record as KBC Sees Cariprazine Drug Priced In

Shares in Richter Gedeon Nyrt.’s, central Europe’s largest maker of contraceptives, rose to the highest close on record as investors priced in the full expected effect of selling its Cariprazine drug in the U.S. market.

The stock rose 3 percent to 5,020 forint by close in Budapest. The shares have jumped 17 percent since U.S. authorities granted approval for Cariprazine, an anti-psychotic drug developed jointly with Allergan Plc, on Sept. 18. Richter’s announcement that it received a more than 20 million-euro ($22 million) milestone payment for the FDA approval gave another boost to the stock last week.

"Investors have priced in the full estimated 610 forint per share effect from sales of Cariprazine in the U.S. market by now," Endre Kosa, an analyst at KBC Groep NV’s Hungarian brokerage, said by phone. Further gains may be limited by what KBC sees as a 5,030 forint fair value for the stock, he said.

The number of shares traded exceeded 1.1 million or 3 times the daily average in the last three months. The price increase has pushed the stock’s 14-day relative strength index above the 70 level that analysts consider overbought. The RSI was at 71 Monday.

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