Global Hunter Securities Downgrades Pharmacyclics (PCYC) to Neutral; Enters Global Partnership with JNJ for Btk-inhibitor PCI-32765
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Price: $84.71 +3.48%
Rating Summary:
8 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Rating Summary:
8 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Trade PCYC Now!
Global Hunter Securities downgraded Pharmacyclics (NASDAQ: PCYC) from Buy to Neutral, maintains price target of $15.00.
Global analyst said, "On December 8, after the close, PCYC announced an agreement with JNJ's (NYSE: JNJ) Janssen Biotech division to develop and commercialize lead drug candidate PCI-32765, a novel Btk-inhibitor currently in phase II trials for various cancers. PCYC will receive $150MM up front and is eligible for up to $825MM in further development and regulatory milestones. The companies will share developmental costs on a 40/60 basis and worldwide profits 50/50. Recent share price momentum (+32% since early Nov) suggested expectations of a 4Q event; remaining 2011 catalysts include ASH data next week and further results from combination studies of PCI-32765 with CD-20-based regimens. While JNJ is an excellent partner and the early PCI-32765 profile clearly impressive, we believe investors may seek to lock in attractive 2011 returns here. As a reminder, PCYC shares have increased in value +128% since our 2Q11 initiation of coverage report. Considering the recent run and medium-term lack of catalysts/data, we are inclined to step off the gas."
For an analyst ratings summary and ratings history on Pharmacyclics click here. For more ratings news on Pharmacyclics click here.
Shares of Pharmacyclics closed at $14.62 yesterday, with a 52 week range of $4.75-$15.82.
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Global analyst said, "On December 8, after the close, PCYC announced an agreement with JNJ's (NYSE: JNJ) Janssen Biotech division to develop and commercialize lead drug candidate PCI-32765, a novel Btk-inhibitor currently in phase II trials for various cancers. PCYC will receive $150MM up front and is eligible for up to $825MM in further development and regulatory milestones. The companies will share developmental costs on a 40/60 basis and worldwide profits 50/50. Recent share price momentum (+32% since early Nov) suggested expectations of a 4Q event; remaining 2011 catalysts include ASH data next week and further results from combination studies of PCI-32765 with CD-20-based regimens. While JNJ is an excellent partner and the early PCI-32765 profile clearly impressive, we believe investors may seek to lock in attractive 2011 returns here. As a reminder, PCYC shares have increased in value +128% since our 2Q11 initiation of coverage report. Considering the recent run and medium-term lack of catalysts/data, we are inclined to step off the gas."
For an analyst ratings summary and ratings history on Pharmacyclics click here. For more ratings news on Pharmacyclics click here.
Shares of Pharmacyclics closed at $14.62 yesterday, with a 52 week range of $4.75-$15.82.
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