Leerink Partners Downgrades EPIRUS Biopharmaceuticals (EPRS) to Market Perform Amid Strategy Change

Leerink Partners downgraded EPIRUS Biopharmaceuticals (NASDAQ: EPRS) from Outperform to Market Perform, saying the strategy change makes it more of a long-term opportunity.

Analyst Jason Gerberry commented, "Given market conditions, EPRS will focus on rare disease biosimilars and look to sell its Ph. 3 biosimilar Remicade. Dr. Scott Rocklage (former Cubist CEO) will replace former CEO Amit Munshi on an interim basis until the company secures capital necessary to advance its biosimilar Soliris and Actemra, which are sold by ALXN (OP) and RHHBY (NR), respectively. While we see the logic in a cash-constrained company targeting less expensive programs with fewer competitors, we expect the stock to trade at or below cash value of ~$0.75 as EPRS is multiple years away from completion of biosimilar development, and ongoing programs face commercial risk from innovator company life cycle mgmt. EPRS has ~$19m cash, enough to fund a few months of operations."

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

Shares of EPIRUS Biopharmaceuticals closed at $0.78 yesterday.

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