Citi Upgrades Keryx Biopharmaceuticals (KERX) to Neutral

Citi upgraded Keryx Biopharmaceuticals (NASDAQ: KERX) from Sell to Neutral with a price target of $6.50.

Analyst Dr. Yigal Nochomovitz says "Early TRx data from the Auryxia re-launch are coming in substantially higher than our expectations and we are making significant revisions to our Auryxia dialysis model both in 2017 and 2018+. For '17, we are raising our Auryxia ests in dialysis to ~$45M from ~$19M. This implies Keryx will exit 2017 with ~7,100 TRx in dialysis next December. Beyond '17, we are raising our peak sales ests in dialysis to ~$160M (from ~$60M) representing revised peak share of ~4% (vs ~1.5%). We have also reinstated a 10% discount rate (from 12.5%) to reflect a commercially appropriate level given 1) a good re-launch and 2) FDA approval of 2nd Patheon manufacturing
site, reducing risk. To be clear, we see our new $160M peak est. in dialysis as fully reflecting how big the dialysis opportunity for Auryxia could reasonably expected to be, given a crowded market and risk around potential generic Renvela."

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

Shares of Keryx Biopharmaceuticals closed at $6.20 yesterday.

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