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Deutsche Bank Boosts PT on Biogen (BIIB) to $170 on Tysabri Deal

February 6, 2013 3:50 PM EST Send to a Friend
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Price: $336.39 +0.28%

Rating Summary:
    21 Buy, 7 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 35 | Down: 23 | New: 13
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Deutsche Bank raised its price target on Buy-rated Biogen (NASDAQ: BIIB) from $160 to $170 following the news the company acquired 100% rights for Tysabri from ELAN (NYSE: ELN) for an upfront payment of $3.25B and contingent royalty payments based on global net sales.

"Higher economics with this new deal should lead to significant EPS accretion and we calculate this deal to be NPV positive for BIIB," the analyst states. The firm calculates DCF impact of this deal at $6/sh on DCF, they are also decreasing SG&A by $50M every year increasing DCF by another $4/sh.

Deutsche Bank models the deal to be $0.60/sh accretive in 2013 and $0.79/sh accretive in 2014. Per BIIB, 2013 and 2014 accretion will be in $0.50-$0.60 and $0.65-$0.80 range respectively.

For an analyst ratings summary and ratings history on Biogen click here. For more ratings news on Biogen click here.

Shares of Biogen closed at $157.36 yesterday.




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