23.8.2010

In a day of light trading and no disastrous data, Nordic markets advanced slightly. MA news and a rising number of bidders for potential targets Potash and 3Par provide some buzz in the global markets, while many of the
Nordic investors might have spilled their morning mug upon seeing that Arabica coffee futures had just hit a 13-year high.

US FDA officials continue to keep busy, as two Stockholm listed companies received major negative news today. The NDA provided by the New York headquartered EpiCept for Ceplene(R) intended for the treatment of AML is not enough to prove therapeutic efficacy. FDA recommended additional pivotal study. The drug was approved for the indication in the EU in 2008. Epicept is bitterly disappointed and that feeling was shared by investors. EpiCept plunged over 40% instantly and stayed rooted at that level eversince. Later on the company CEO Jack Talley stated that a new share issue right after the last round of equity financing was completed is a "last resort". Current cash balance however is very low, so the company does not have much leverage in negotiations for other options.

The healthcare arm of the Swedish Getinge AB received a warning letter concerning its USA based production unit. The letter was for inadequate documentation. The company said the warning has little to no impact on the actual running of business and no restrictions were placed on them. Getinge traded around 2% lower for the day.

In better news from the sector, Danish pharmaceutical company ALK-Abelló reported earnings mostly in line with expectations. At the same time,
the company raised its expectations for the year quite substantially and markets loved it.

Cevian Capital together with colourful investor Carl Icahn flagged in Swedbank. They now hold 4,64% of the bank's share capital. Swedish housing developer JM advanced 4% on an upbeat quarterly report. The featured stock of the week, BERGEN, ended right back where it started the day at 8 NOK, after having shed nearly 10% earlier on.

Oriflame cosmetics' troubles in Iran escalate, the company communicates. Operations in Teheran have been closed by the authorities and three
staffmembers have been detained. Oriflame says that despite Iran representing around 20% of sales to Asia, it has no impact on 2010 outlook. One could certainly argue that when you operate in such places of unparallelled consistency in decisions making, you might be inclined to give ratherwide guidance and a long attachment section in the filings... Speaking of... Lundin Mining advanced considerably over the news that authorities in Democratic Republic of Congo have resolved the disputed issues concerning Tenke Fungurume copper mine project license. Lundin Mining holds a minority share in the project headed by Freeport McMoRan. And continuing with the theme, Chairman of the Social Democratic Party of Finland Jutta Urpilainen has made a substantial increase in the capital gains tax an ultimatum for the party to take part in the next government.