Horizon Pharma (HZNP) Volatility Higher into PDUFA for RA Drug RAYOS
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Horizon Pharmaceuticals (Nasdaq: HZNP) is trading slightly lower Thursday into its PDUFA date for its next rheumatoid arthritis drug.
Today is Horizon's PDUFA date for its rheumatoid arthritis treatment LODOTRA, which will be known as RAYOS in the U.S. The drug is already approved in 16 European countries.
One source quoted by the Financial Times says the drug has a market potential of $81 million by 2016. The news source also noted that since RAYOS is a delayed-release of low-dose prednisone and side effects are already known, there should be limited road blocks to approval. That said, FT also noted how doctors might not be quick to move on it given that some might not be convinced RAYOS offers superiority over generic prednisone.
Horizon's current RA drug, DUEXIS, saw sales of $1.1 million in the first-quarter of 2012, so specific numbers for RAYOS can't be hammered down. Some outlets see the market for RA drugs exploding over the next few years.
Currently, there are four firms covering Horizon. Stifel Nicolaus carries a price target of $10 on Horizon, while JMP has a target of $16. The targets represent upside of 31 percent and 110 percent from today's price in the $7.50 to $7.60 range, respectively.
Horizon is up 0.7 percent Thursday. Volatility is lower, but is up 112 percent over its annual average.
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Today is Horizon's PDUFA date for its rheumatoid arthritis treatment LODOTRA, which will be known as RAYOS in the U.S. The drug is already approved in 16 European countries.
One source quoted by the Financial Times says the drug has a market potential of $81 million by 2016. The news source also noted that since RAYOS is a delayed-release of low-dose prednisone and side effects are already known, there should be limited road blocks to approval. That said, FT also noted how doctors might not be quick to move on it given that some might not be convinced RAYOS offers superiority over generic prednisone.
Horizon's current RA drug, DUEXIS, saw sales of $1.1 million in the first-quarter of 2012, so specific numbers for RAYOS can't be hammered down. Some outlets see the market for RA drugs exploding over the next few years.
Currently, there are four firms covering Horizon. Stifel Nicolaus carries a price target of $10 on Horizon, while JMP has a target of $16. The targets represent upside of 31 percent and 110 percent from today's price in the $7.50 to $7.60 range, respectively.
Horizon is up 0.7 percent Thursday. Volatility is lower, but is up 112 percent over its annual average.
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