Rodman & Renshaw Maintains Market Outperform on Pharmacyclics

Rodman & Renshaw has published a research report on Pharmacyclics PCYC after the company made an announcement this morning that the United States Patent and Trademark Office (USPTO) has issued the company a patent covering PCI-32765. In the report, Rodman & Renshaw writes, "PCYC had previously shifted the relevant patent expiry on PCI-32765 from 2026 to 2029. This new patent could potentially move the relevant expiry back further to 2032. As a reminder, our existing model only assigns a terminal value (post-2026) of ~$215mm. Should PCYC actually be able to forestall generic entrants until 2032, PCI-32765 could potentially garner significant revenues after 2026 providing potential upside to our valuation. However, it is important to remember that any cashflow in the post-2026 timeframe would be heavily discounted even before factoring in additional potential risk of generic entrants." Rodman & Renshaw maintains its Market Outperform rating and $22 price target on Pharmacyclics, which is currently trading up $0.14 from Friday's $14.62 closing price.