Pharmacyclics (PCYC) Worth Up to $274/Share in Takeout - Nomura

Nomura Securities analyst M. Ian Somaiya reiterated a Buy rating and $196 price target on Pharmacyclics (NASDAQ: PCYC) following reports yesterday that Novartis and Johnson & Johnson are interested in acquiring Pharmacyclics at a potential valuation of $17bn-$18bn.

Somaiya commented, "Based on our DCF and sales multiple analyses, we think Pharmacyclics is worth $17bn- $22bn, or $219-$274 per share, using 66% probability adjusted Imbruvica WW peak sales estimate of $13bn. Our Imbruvica WW peak sales estimate only includes hematology indications and therefore, autoimmune indication represents upside to our risk-adjusted estimates. As Pharmacyclics’ ex-U.S. partner, Johnson & Johnson is a logical acquirer of Pharmacyclics, but we think multiple bidders could surface as the process has become public."

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

Shares of Pharmacyclics closed at $220.22 yesterday.

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