UPDATE: H.C. Wainwright Initiates Coverage on Keryx Biopharmaceuticals on Discounted Revenues, EPS Valuation Methodology

In a report published Wednesday, H.C. Wainwright & Co. analyst Reni Benjamin initiated coverage on Keryx Biopharmaceuticals KERX with a Buy rating and $15.00 price target. In the report, H.C. Wainwright & Co. noted, “We are initiating coverage of Keryx Biopharmaceuticals with a BUY rating and a 12-month target price of $15 based on a discounted revenues and earnings per share valuation methodology. Using a typical short-term pharmaceutical cycle to peak revenues model, and a conservative peak penetration rate of 23%, we estimate sales to reach $330 MM by 2019, which corresponds to approximately 23% of the US phosphate binder market. Given the clinically differentiated profile demonstrated in the Phase 3 clinical study, we believe Keryx should be able to compete in the $1.5 B worldwide phosphate binder market.” Keryx Biopharmaceuticals closed on Tuesday at $9.78.