UPDATE 1-Crucell shares surge on partner's U.S. deal
Mon Apr 4, 2005 05:23 AM ET
(Adds CEO comment, analysts, background, updates shares)
AMSTERDAM, April 4 (Reuters) - Shares in Dutch biotechnology firm Crucell (CRCL.AS: Quote, Profile, Research) jumped as much as 8.5 percent on Monday after it said its partner Sanofi Pasteur had won a $97 million U.S. contract for which Crucell would be a subcontractor.
The Dutch group did not disclose financial details but chief executive Ronald Brus told ANP-Reuters he was "comfortable" with an analyst's estimate that Crucell would receive 30-40 million euros over the next three years as a result of the deal.
Crucell and its partner will increase capacity to make an influenza vaccine based on Crucell's technology and will speed up licensing.
Brus also said that Crucell had reached a new agreement on royalties with Sanofi Pasteur, the vaccine unit of drug maker Sanofi Aventis (SASY.PA: Quote, Profile, Research) (SNY.N: Quote, Profile, Research) .
"Up to now, we would receive 10 percent of potential sales of the influenza vaccine sold by Sanofi Aventis. We now agreed on a considerably higher percentage," he said, declining to say what the new figure was.
Dutch broker Kempen upgraded Crucell's mid-cap stock to "add" from "neutral" because of the new deal.
The U.S. Department of Health and Human Services had not granted contracts to other influenza vaccine makers so far, which is strong indication of the competitive advantages of Crucell's technology, Kempen analyst Mutlu Gundogan said.
"We believe this validation could result in even more industry acceptance ... leading to increased licence agreements for Crucell," he said in a note to investors.
At 0852 GMT, Crucell shares traded 7.3 percent higher at 11.04 euros, after touching an 11.17 euro session high and outperforming a slightly lower Dutch AMX mid-cap index.
But some sector watchers fear Crucell's stock may have surged too sharply as investors banked on the firm's profitable prospects and licensing deals.
"Our 'reduce' (rating) is reiterated as the valuation is running ahead of the development within Crucell," analyst Jan van den Bossche at broker Petercam said.