Piper Jaffray Downgrades Sagent Pharmaceuticals (SGNT) to Neutral; Doesn't See Another Bidder Emerging

Piper Jaffray downgraded Sagent Pharmaceuticals (NASDAQ: SGNT) from Overweight to Neutral with a price target of $21.75 (from $22.00) after the company agreed to be acquired by Japan-based Nichi-Iko Pharmaceutical for $21.75 per share.

Analyst David Amsellem commented, "would be surprised to see another bidder emerge given our view that the implied transaction multiple (2.0x estimated 2016 revenue of $322M) ascribes reasonable value to the abbreviated NDA (aNDA) pipeline (around 60 pending filings), bearing in mind that the base generics business has low margins as a result of shared economics with third party manufacturing partners."

For an analyst ratings summary and ratings history on Sagent Pharmaceuticals click here. For more ratings news on Sagent Pharmaceuticals click here.

Shares of Sagent Pharmaceuticals closed at $15.50 yesterday.

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