UPDATE: J.P. Morgan Initiates Coverage on Pharmacyclics on Ibrutinib Potential
In a report published Thursday, J.P. Morgan analyst Cory Kasimov initiated coverage on Pharmacyclics (NASDAQ: PCYC) with an Overweight rating and $142.00 price target.
In the report, J.P. Morgan noted, “We are initiating coverage of Pharmacyclics with an Overweight rating based on the potential of ibrutinib (50/50 partnership with JNJ), its first-in-class, oral therapy for the treatment of B Cell malignancies. Bottom line, we think investors are attracted to truly great drugs, and ibrutinib has all the makings of one. PCYC certainly isn't cheap (+106% YTD), but we suspect investor appetite will persist based on the drug's multibillion-dollar sales potential. On the regulatory front, we believe ibrutinib is largely de-risked given its highly promising safety/efficacy profile and multiple Breakthrough Therapy designations; we expect approval by year end. We also don't see a lot of launch risk here, as our doc checks indicate widespread enthusiasm. Longer term, duration of use will be a key lever for upside, along with new indications and combination regimens that further improve on ibrutinib's already impressive efficacy. Much like Gleevec in CML, we see ibrutinib as a game-changer, and think the share price will continue to reflect that.”
Pharmacyclics closed on Wednesday at $118.98.
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