Celltrion shares rally in South Korea after EU OKs advertising and marketing of its COVID-19 remedy
Celltrion Inc. shares rebounded Monday after the European Commission approved the South Korean biotech company to commercialize its COVID-19 antibody treatment.
The European approval of regdanvimab, marketed by Celltrion as Regkirona in South Korea, caused the company’s stock price to rise + 9.13% up to 18% to 251,000 Korean won ($ 212.72) on 068270 after the news early Monday became known.
Shares were last 10% higher at KRW 235,000 in early afternoon trading, compared to benchmark Kospi’s 1.0% gain.
The EC’s official allusion to regdanvimab could improve Celltrion’s earnings prospects, which have been tarnished by the COVID-19 pills developed by Merck & Co. Inc. MRK, -0.02%,
said Samsung Securities analyst Seo Keun-hee.
New contract wins following regdanvimab’s approval in Europe will be critical in removing uncertainty about Celltrion’s profits and maintaining its share price, Seo said.
Celltrion said negotiations were ongoing with about 30 countries on Monday to supply regdanvimab, which is already approved for use in South Korea and conditionally approved for emergency use in Indonesia and Brazil.