Coloplast Hits 15-Week Low as Lawsuits Loom: Copenhagen Mover
Coloplast A/S (COLOB) fell to its lowest in more than three months in Copenhagen trading after risks rose the Danish medical device maker may lose legal battles over a product for treating pelvic organ prolapse and incontinence.
Coloplast fell as much as 1.8 percent to 306 kroner, its lowest level since May 2. The share declined 1.6 percent, or 5 kroner, to 306.50 kroner at 10:51 a.m. local time. Trading volume was 30 percent of the three-month daily average. The stock was the worst performing in the benchmark OMX Copenhagen index.
Coloplast is among several producers of vaginal-mesh implants that have been sued by U.S. patients because of injuries alleged to have been sustained from the products. A jury in the first federal trial yesterday ordered rival C.R. Bard Inc. to pay $2 million in damages to a woman who sued the Murray Hill, New Jersey-based company.
“We still see significant uncertainties regarding the potential outcome for Coloplast, but we expect the verdict to put pressure on the share price,” Soeren Soerensen, an analyst at Nordea Markets, said today in a note to investors. Soerensen said he recommends holding the share.
The Humlebaek, Denmark-based company, which faces lawsuits in several U.S. federal and state courts, said Aug. 13 it doesn’t expect the cases to have a “significant financial impact.”
To contact the reporter on this story: Frances Schwartzkopff in Copenhagen at firstname.lastname@example.org