UCB Stock Soars to Record High

Propelled by the successful US launch of its flagship drug Bimzelx, Belgian pharmaceutical company UCB has seen its shares soar on the Brussels Stock Exchange. Investor optimism has driven its market capitalisation past that of Argenx, and it's even closing in on German industry giant Bayer.

Concerns sparked last October by an FDA warning about potential side effects of Bimzelx, a psoriasis treatment, seem to have faded completely. Since November 10th, UCB's share price has climbed by over 75%, reaching a new record high of 118.50 euros during trading on Thursday (closing at 116.25 euros). This surpasses its previous all-time high from April 2022 and comes as the FDA considers Bimzelx for approval to treat hidradenitis suppurativa.

Analysts Shift Perspective

The stock's enthusiasm has led even initially skeptical analysts to revise their outlook. Morgan Stanley's Thibault Bouterin recently upgraded his recommendation from "underweight" to "equal weight", citing reassuring trends in Bimzelx prescriptions and insurance coverage. He also anticipates positive results for Rystiggo, a treatment for myasthenia gravis. The outlook for 2024 appears strong, with the possibility of multiple positive catalysts by year-end, including results from clinical trials for Parkinson's, Alzheimer's, and atopic dermatitis treatments.

UCB's Market Positioning

Once burdened by worries over expiring patents, UCB is experiencing a major resurgence. The company has overtaken Argenx in market capitalisation and now ranks third among the Bel 20's largest constituents. Valued at nearly 23 billion euros, UCB holds the tenth position within Europe's pharmaceutical sector, surpassing BioNTech and approaching Bayer, whose value has declined since its Monsanto acquisition.