BioCentury on BioBusiness,
Analyst Picks & Changes
Analyst picks & changes
Published on
Monday, February 11, 2013
|
Company
|
Bank
|
Analyst
|
Coverage
|
Opinion
|
Wk
chg
|
2/8
cls
|
|
Biogen
Idec Inc. (NASDAQ:BIIB)
|
BMO
Capital Markets
|
Jim
Birchenough
|
Price
target
|
Market
perform
|
5%
|
$164.44
|
|
|
Canaccord
|
Ritu
Baral
|
Price
target
|
Hold
|
|
|
|
|
Jefferies
|
Thomas
Wei
|
Price
target
|
Buy
|
|
|
|
|
Stifel,
Nicolaus
|
Joel
Sendek
|
Price
target
|
Buy
|
|
|
|
Birchenough
raised his target to $158 from $147 after Biogen Idec said it will acquire
full rights and IP for multiple sclerosis drug Tysabri natalizumab from
partner Elan Corp. plc (NYSE:ELN). Biogen Idec will pay $3.3B in cash
up front, terminating the partners' current 50/50 profit split. Birchenough
said the deal is "clearly favorable" to Biogen Idec in the near
term, with an improvement in gross margins of 80-90% over the next five
years, potential for operational and tax synergies, more streamlined control
of Tysabri and greater economic interest in potential expanded indications.
Overall, Biogen Idec expects the transaction to be accretive to non-GAAP EPS
by $0.50-$0.60 in 2013 and by $0.65 to $0.80 in 2014. Birchenough raised his
2013 non-GAAP EPS estimate to $7.90 from $7.35 (see "Rethinking Elan,
Again, A13).
|
|
Baral
raised her target to $163 from $139 on the Tysabri deal. She raised her
Tysabri revenue estimates to $1.64B from $1.24B in 2013 and to $2.2B from
$1.87B in 2014.
|
|
Wei
raised his target to $201 from $187 on the Tysabri deal. He raised his EPS
estimates to $6.75 from $6.49 in 2013 and to $9.64 from $9.43 in 2014.
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