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Canaccord Genuity on Life Sciences/Biotechnology: Forex Exposure - Impact ITMN, PLX, AEGR & ONXX

January 26, 2012 11:20 AM EST
ITMN Hot Sheet
Rating Summary:
    10 Buy, 4 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 19 | Down: 16 | New: 82
Canaccord Genuity on Life Sciences/Biotechnology: Forex Exposure - Impact to covered stocks

Analyst, Ritu Baral, said, "Recent weakness in the Euro has heightened investor concern that companies relying significantly on European revenues may show poorer than expected results in Q4/11 and perhaps beyond. In this note, we highlight the biotechnology companies in our coverage universe with the greatest foreign currency exposure: ITMN, PLX, AEGR, and ONXX."

InterMune (NASDAQ: ITMN)(BUY, $23 target): Esbriet off to strong start, near-term focus should stay on patient numbers

"InterMune is launching Esbriet for Idiopathic Pulmonary Fibrosis across Europe in 2012...Given high investor focus on the Esbriet launch dynamics, we believe a true understanding of Esbriet adoption may be better reflected in reported patient numbers. We think revenue figures will be confounded by currency fluctuation, Named Patient Program free drug supply, and initial Esbriet titration packs."

Onyx Pharmaceuticals (Nasdaq: ONXX)(BUY): Minimal FX risk anticipated

"We estimate that about 3.3% of Q4 guidance could be at risk based on our estimate of ex-U.S./Japan Nexavar sales constituting about 57% of total sales."

Protalix (NYSE: PLX)(BUY, $8 target): Upcoming launches/revenues: PLX, AEGR largely internally hedged

"We note that Protalix, which is an Israel-based company that reports in dollars, has an FDA PDUFA date of May 1 and an expected CHMP review date around mid-2012 for lead drug taliglucerase, a recombinant enzyme therapy for Gaucher’s disease. We also note that the drug could receive approval in Israel and Brazil, both major Gaucher’s markets, shortly after US approval."

Aegerion (Nasdaq: AEGR)(BUY, $24 target): "Aegerion is due to launch a revenue generation compassionate use program for its Phase 3 HoFH drug lomitapide in France (called an ATU) shortly, which would result in Euro exposure."


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