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Piper Jaffray Reiterates Overweight on Horizon Pharma (HZNP) Following Rx Trends

September 8, 2015 8:12 AM EDT
Get Alerts HZNP Hot Sheet
Price: $116.30 --0%

Rating Summary:
    10 Buy, 11 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Piper Jaffray maintained an Overweight rating and $51.00 price target on Horizon Pharma (NASDAQ: HZNP) following a closer look at prescription (Rx) trends. Third party data points to continued strength across the board.

Analyst David Amsellem commented, "We took a closer look at prescription (Rx) trends for Horizon's key top-line drivers (namely its primary care-focused assets), and the third party data (i.e., IMS) points to continued strength across the board, potentially setting the stage for further upward revisions to 2015 guidance (and this is even when factoring in the steep gross-to-net spreads associated with these products). Notably, Rx trends for Pennsaid 2% have remained strong in 3Q15, with sales now annualizing to as high as $170M+ (see below for more details). Given this favorable backdrop, along with ample room for further penetration for Ravicti and Actimmune, visibility on a long-term EPS CAGR in at least the high teens is strong in our view, translating into an attractive valuation in the context of a 2016 P/E of only 12x our estimate. We reiterate our Overweight rating and $51 PT."

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

Shares of Horizon Pharma closed at $29.40 yesterday.



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