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OPKO Health (OPK): Rayaldee Could Generate $118MM In Revenue - Cantor

October 12, 2017 8:47 AM EDT
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Price: $1.21 +13.08%

Rating Summary:
    7 Buy, 3 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Cantor Fitzgerald analyst, Louise Chen, reiterated her Overweight rating on shares of Opko Health (NASDAQ: OPK) after the company announced that its subsidiary EirGen Pharma has entered into an exclusive agreement with Japan Tobacco Inc. for the development and commercialization of Rayaldee for the treatment of secondary hyperparathyroidism (SHPT) in non-dialysis and dialysis patients with chronic kidney disease (CKD).

Under the terms of the agreement, JT will make an upfront payment to OPK of $6MM with another $6MM payment to be made upon initiation of OPK’s planned phase 2 study of Rayaldee in U.S. dialysis patients. In addition, OPK will be eligible to receive up to an additional $31MM in development and regulatory milestones and $75MM in sales based milestones.

The analyst stated "This deal underscores that the peak sales potential for Rayaldee are underappreciated. We believe that the Street has modest exepctations for Rayaldee in the U.S. and internationally, but this deal helps validate the market opportunity. The salesforce expansion and KDIGO guidelines should also help accelerate the uptake of this drug in the U.S.".

No change to the price target of $20.

For an analyst ratings summary and ratings history on Opko Health click here. For more ratings news on Opko Health click here.

Shares of Opko Health closed at $6.81 yesterday.



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Cantor Fitzgerald, Louise Chen