Oct. 5 (Bloomberg) -- Gedeon Richter Nyrt. gained the most in three years after Hungary’s biggest drugmaker reported positive results from a clinical trial, lifting the nation’s benchmark BUX index of stocks.
The shares rose 9.4 percent to 33,800 forint by the 5 p.m. close in Budapest, the biggest jump since October 2008, after surging as much as 13 percent and being briefly suspended for breaching the 10 percent intraday trading limit. The BUX index, in which Richter has a 19 percent weighting, climbed 5.7 percent to 16,457.64.
A clinical trial of cariprazine, an antipsychotic agent, by Richter and Forest Laboratories Inc. showed “significant” symptom improvement for patients, the two companies said in a statement on the website of the Budapest Stock Exchange today.
“The news was very important and positive for Richter,” Akos Herczenik and Levente Blaho, analysts at Raiffeisen Bank International AG in Budapest, wrote in a research report today. “We are expecting positive market reaction. Accordingly, it’s worth opening a long position.”
Patients with acute manic episodes experienced improvement compared to placebo-treated patients, Richter said, adding that researchers are also investigating the drug’s effectiveness for patients with schizophrenia and bipolar depression.
“Bipolar disorder affects approximately 2.3 million adults only in the United States,” Attila Vago, an analyst at Concorde Securities Ltd. in Budapest, wrote in a note to clients. “The potential worldwide market size for schizophrenia is billions of dollars, where Forest and Gedeon Richter are expected to be well positioned to gain at least 10 percent market share.”
European stocks advanced for the first time in four days amid speculation policy makers are examining measures to shield banks from the sovereign-debt crisis.
The forint strengthened for the first time in six days against the euro, adding 0.8 percent to 297.3. OTP Bank Nyrt., Hungary’s largest lender, gained 4.8 percent to 3,150 forint.
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