ViroPharma (VPHM) Fair Value $46-$52 in M&A Scenarios - Deutsche Bank

September 13, 2013 2:56 PM EDT Send to a Friend
Get Alerts VPHM Hot Sheet
Price: $49.96 --0%

Rating Summary:
    7 Buy, 13 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 8 | Down: 12 | New: 23
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On Friday Bloomberg sources said ViroPharma Inc. (Nasdaq: VPHM) has attracted takeover interest from Sanofi (NYSE: SNY) and Shire (NYSE: SHPG).

Commenting, analyst Robyn Karnauskas said, "In M&A Scenario, if VPHM gets acquired by a company w/o HAE sales force we see FV at $46/sh. We assume only 25% SG&A synergies and do not model R&D synergies as VPHM is a lean company. We assign 100% probability to Maribavir sales in refractory CMV . . .In M&A Scenario, if VPHM gets acquired by a company w HAE sales force (Shire sells a drug in acute HAE space) we see FV at $52/sh. We assume only a 70% SG&A synergies but do not model R&D synergies."

Deutsche Bank has a Buy rating on ViroPharma with a price target of $38.00. Base case assumes peak Cinryze sales at $880M and peak Viropharma sales at $1.3 billion. It also assumes 50% probability to Maribavir.

For an analyst ratings summary and ratings history on ViroPharma (NASDAQ: VPHM) click here. For more ratings news on ViroPharma click here.

Shares of ViroPharma closed at $30.47 yesterday.


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