Horizon Pharma (HZNP) Primary Care Moving to Contracting Model - Mizuho
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Mizuho Securities analyst, Irina Koffler, reiterated her Buy rating on shares of Horizon Pharma (NASDAQ: HZNP) and raised the price target to $30.00 (from $24.00) after reporting upside to both revenue and EPS.
HZNP reported 2Q:16 revs of $257.4M and $0.56 EPS vs. consensus estimates $235M and $0.50. The beat was driven by stronger primary care sales, improved gross margins, and tighter expense control (all positives, in our view). Management also reiterated its FY:16 guidance of $1.025-1.050B in sales and $495-$510M in adjusted EBITDA. After topping results, this range now appears more attainable and should translate into favorable model updates.
Aside from quarterly reports, and PBM contracts, the analyst expects more HZNP momentum from the release of additional Krystexxa data (possibly late breaker abstract for the TRIPLE trial) at the annual meeting of the American College of Rheumatology. Street expectations for positive Actimmune data in the Friedreich's Ataxia (FA) indication are modest (30% likelihood of success) so this event carries a favorable risk/ reward. Mgmt also hopes to execute at least one more deal before year though not necessarily an accretive one.
Mizuho's 2016 estimates go to $1,025M in revs and $2.21 EPS (from $1,007M and $2.07).
Shares of Horizon Pharma closed at $20.96 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesIrina Koffler
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