Ladenburg Thalmann Reiterates Buy, $8.50 PT on Opko Health

Ladenburg Thalmann maintains its Buy rating and $8.50 target price on Opko Health OPK as the company's partner Tesaro IPO filing should increase the profile of Rolapitant. Ladenburg Thalmann says, "On 3/23/12, OPK's partner for rolapitant, Tesaro Inc., filed an S-1 with the SEC for an IPO. Rolapitant is Tesaro's lead program and, in our view, the IPO process is likely to increase overall investor awareness of the program and provide a transparent publicly traded comparable to clarify valuation. Terms of the agreement call for OPK to receive a tiered double-digit royalty on sales of rolapitant in the U.S. and split economics in other territories. By our estimates, OPK will receive 25%-33% of total economics for rolapitant." OPK closed at $4.87 a share on Friday.