Celltrion Inc.’s shares rallied Monday after the European Commission granted the South Korean biotech firm approval to market its COVID-19 antibody treatment.
The European approval of Regdanvimab, marketed by Celltrion as Regkirona in South Korea, drop up the company’s stock price 068270, +9.60% as much as 18% to 251,000 Korean won ($212.72) after the news was disclosed early Monday.
Shares were last 10% higher at KRW235,000 with in early afternoon trade, compared with the benchmark Kospi’s 1.0% increase.
The E.C.’s official nod to Regdanvimab may boost Celltrion’s earnings prospects, which had been dimmed 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 crucial to removing the uncertainty over Celltrion’s earnings and sustaining its stock price, Seo said.
Celltrion said Monday negotiations with about 30 countries are underway to supply Regdanvimab, which already has marketing approval in South Korea and conditional approval for emergency use in Indonesia and Brazil.