Actelion Ltd’s share price up, announces that its lung disease drug meets main late-stage test results targets

Actelion Ltd made an official statement today, revealing that its experimental drug against a lung disease managed to meet the main goal of a study carried out at a late stage of the process. This is said to provide company with a drug that can help it accumulate annual sales of about 2 billion Swiss francs (2.2 billion dollars).

One of the analysts, who work for Bank of America – Merrill Lynch wrote in a note to investors, which was cited by Bloomberg: “The data has the potential to transform Actelion.”

The shares of Actelion Ltd rose by almost 15% after the company announced that its experimental heart-and-lung treatment met the targets set in a late-state study. The drug is said to be able to become a true blockbuster lung treatment. The drug, called Selexipag, has been reported by the company to reduce the risk of morbidity or mortality from pulmonary arterial hypertension. This increases the survival rates of the disease, which is currently incurable.

If the treatment is to be given an approval, this would provide the Switzerland-based company a headstart thanks to the most effective and convenient drug for the PAH disease in a class of medicines, which are called prostacyclin receptor agonists. The drug would also provide Actelion Ltd with an advantage against several other treatments, including the ones manufactured by United Therapeutics Corp.

Mr. Richard Parkes, who is currently working as one of the analysts at Deutsche Bank AG said in a telephone interview that was cited by Bloomberg: “Doctors want a drug of that mechanism that’s easier to prescribe and easier to use. Selexipag is a truly innovative treatment and there’s not really any debate about that.”

Actelion Ltd was gaining 15.34% to trade at 104.90 Swiss francs per share by 13:04 GMT, marking a one year change of +86.82%. According to the information published on the Financial Times, the 15 analysts offering 12-month price targets for Actelion Ltd have a median target of 91.00, with a high estimate of 110.00 and a low estimate of 68.00. The median estimate represents a 0.05% increase from the last price of 90.95.