Guggenheim Remains Positive on Aralez Pharma (ARLZ) Amid Toprol-XL Deal with AstraZeneca (AZN)

October 4, 2016 8:52 AM EDT
Get Alerts ARLZ Hot Sheet
Price: $4.93 -0.8%

Rating Summary:
    1 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 11 | New: 8
Trade ARLZ Now!
Join SI Premium – FREE

Find out which companies are about to raise their dividend well before the news hits the Street with's Dividend Insider Elite. Sign-up for a FREE trial here.

Guggenheim affirms Aralez Pharmaceuticals Inc. (Nasdaq: ARLZ) with a Buy rating and $12 price target after the company announced it will acquire the U.S. rights to Toprol-XL (metoprolol succinate) and its Authorized Generic (AG) pursuant to an agreement entered into between AstraZeneca and Aralez Pharmaceuticals Trading DAC, a subsidiary of Aralez.

The firm commented today, With this deal, ARLZ should be profitable on an adjusted EBITDA basis in 2017 and we had not expected profitability until 2020. Toprol-XL is an extended release beta-blocker (indicated for high blood pressure). With the recently approved Yosprala, as well as the acquisition of Zontivity, ARLZ now has a significant offering of product that we expect to drive revenue in 2017+, and a strong base to continue the company's business development. Toprol-XL and its AG recorded a combined $89MM in 2015, and $53MM year to date through 6/30/2016. ARLZ expects the transaction to be immediately accretive in 2017 on an adjusted basis.

Guggenheim also noted upcoming catalysts for Aralez: 1) Yosprala 100/40mg dose EU MAA filing in 4Q16; 2) Treximet/MT400 Canada filing by end of '16; 3) Build-out of 110-person cardiovascular sales force ahead of Yosprala launch in October '16; 4) Close Toprol-XL acquisition, 4Q16; and 5) M&A and business development '16+.

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

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments

Related Entities

Definitive Agreement, Guggenheim

Add Your Comment