SVB Leerink Starts Horizon Therapeutics (HZNP) at Market Perform

SVB Leerink analyst David Risinger initiates coverage on Horizon Therapeutics (NASDAQ: HZNP) with a Market Perform rating and a price target of $95.00.

The analyst comments "We are initiating coverage of Horizon Therapeutics with a Market Perform rating and a PT of $95 (14x adj. 2023E EPS of $6.80; 16x 2023E EPS of $5.96 net of stock compensation expense). Management has executed extremely well and built a compelling portfolio of rare disease assets, and we view shares as relatively inexpensive. But we lack visibility on underlying patient demand and payer access for #1 drug Tepezza for thyroid eye disease (TED)…and thus conviction in accelerating Tepezza sales prospects. We expect more clarity on whether increased commercial spending will drive greater Tepezza uptake in coming quarters. We have greater confidence in the sales momentum for Horizon’s other top growth drivers Krystexxa (for uncontrolled gout) and Uplizna (for neuromyelitis optica spectrum disorder [NMOSD]). HZNP also has significant rare disease drug candidate optionality, but HZNP’s key readouts may not occur until 2H23. Finally, we view SMID-cap biopharma sector weakness as a relative positive for HZNP – because the company can capitalize on lower valuations to potentially acquire attractive future growth drivers."

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

Shares of Horizon Therapeutics closed at $90.35 yesterday.

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