Retrophin's (RTRX) PRV Sold For More Than Projected, Says Deutsche Bank

Deutsche Bank maintained a Buy rating on Retrophin (NASDAQ: RTRX) and raised its price target to $52.00 (from $50.00). Earlier Retrophin announced an agreement to sell its Rare Pediatric Disease Priority Review Voucher to Sanofi (NYSE: SNY) for $150 million, followed by two equal installments of $47.5 million in 2016 and 2017.

Analyst Robyn Karnauskas noted the $245 million sale price was ahead of her expectations by $145 million.

"We are raising our TP to $52 to account for the transaction," said analyst Robyn Karnauskas. "This is the highest price paid for a voucher to our knowledge and demonstrates their scarcity. We note that UTHR (Nasdaq: UTHR) is the only other company to have one of these vouchers in its possession.

"The company sold the voucher for $145M over our projected sale price of $100M. A sale of $100M was worth approx $1.4/sh to our DCF. The additional $145M is approx $2/sh to our DCF," added the analyst.

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

Shares of Retrophin closed at $26.87 yesterday.

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