BALKAN pharmaceuticals are falling as the world faces a supply shortage that is worsening, a major pharmaceutical industry analyst says.
Balkans national pharmaceutical production industry has shrunk by around 5% in the past two years as its main supplier, Colombia, struggles to keep up with demand from the world’s second-largest economy.
But the sector is showing signs of recovery, with pharmaceuticals producer Rigel Pharmaceuticals down around 1% in premarket trading on Thursday after hitting a record high in January, according to the latest figures from the European Medicines Agency.
Rigel, which is owned by multinational pharmaceutical firm Roche, has been unable to find a buyer for its product, a drug called Risperdal, in a crisis that has seen Colombia supply countries like Italy and the UK with around 100 million doses of the drug each year.
Rigel’s stock fell as much as 10% in after-hours trading on the New York Stock Exchange on Thursday, but then rebounded.
It is the first time Rigel’s shares have fallen this early in the year.
“I am disappointed by the stock market’s downward trend,” said Alexei Zhdanov, an analyst at KPMG.
“It is disappointing that Rispendal has fallen in value to the extent that it is down more than 10% from the record high price of $1.16 per pill in January.
I believe the market will be on the lookout for further price declines.”
Rigels share price fell after it reported record profits and boosted its earnings per share to $1 a share, but analysts are still waiting for Rigel to announce a plan to ramp up production.
“This was a very good report for Rigels prospects.
I would have liked to see them go a little higher.
But it is clear that Rigel has not reached the capacity to produce enough Rispersdal to meet the demand that the Colombians are receiving,” Zhdanova said.
Rigor’s latest results also came as Rigel announced a deal to acquire a second-generation generic version of its drug Rispertil, a highly-competitive alternative to the branded version of Risepristil, the generic version used by more than 60% of the world population.
“Rigela, a new generic, will be available for all consumers who wish to buy the branded Risperetil, as well as those who want to obtain generic versions of their medicines,” Rigel said in a statement.
The deal, worth $1 billion, was announced on Monday.