Oppenheimer Reiterates Outperform Rating on China Nuokang (NKBP)

Oppenheimer is out with an analyst note this morning that is reiterating their Outperform rating on shares of China Nuokang Bio-Pharmaceutical Inc. NKBP; they have an $11.00 price target on the stock. Oppenheimer analysts cited another strong quarterly earnings report with revenue and EPS both topping the Street and Oppenheimer’s expectations. They said that “solid Baquting sales underscore Nuokang's strength in China's growing hemocoagulase market while improving gross margin also supports stable product pricing. However, the SFDA's unexpected acceptance of Reptilase's import license renewal application added a twist, though the risk appears manageable as Street estimates haven't included any market share gain upside.” Analysts said that while they await additional visilibity on Kaitong's approval and launch, risk/reward remains favorable due to: 1) NKBP trading at just 7.9x our E2010 EPS ex-cash 2) strong growth perspective of China's hemocoagulase market 3) Nuokang's specialty sales force to be leveraged to distribute additional in-licensing products.