Market Overview

UPDATE: MLV & Co Reiterates On Keryx Biopharmaceuticals On Increased Risk

Share:
Related KERX
Biotech Pair Trade? Brean Weighs In On Keryx Biopharma And Rockwell Medical
Is Keryx Still A Good Buy After Weak Prescription Data?
New finance chief at Keryx Bio (Seeking Alpha)

In a report published Monday, MLV & Co analyst Graig C. Suvannavejh reiterated a Buy rating on Keryx Biopharmaceuticals (NASDAQ: KERX), but lowered the price target from $27.00 to $21.00.

In the report, MLV & Co noted, “KERX reported 1Q results last week, but the main focus was mgmt's comments on the call surrounding outstanding CMC issues with the NDA for lead asset Zerenex (hyperphosphatemia). We hadn't previously been aware of CMC issues, and while KERX has provided add'l data on this (as well as drug-drug interactions, with info on both recently requested by FDA), we were disappointed to hear of this latest update. With the Zerenex PDUFA just one month away (June 7) and mgmt on multiple occasions citing ‘there are no guarantees' (yes, we applaud the transparency), we're feeling a bit less confident in an on-time approval.

"We don't model a delay for Zerenex at this time, but given the increased risk in a potential on-time FDA approval, we now increase the discount rate in our DCF from 17.5% to 20%, and as a result, lower our 1-yr PT to $21 (vs. prior $27, but still 73% upside).”

Keryx Biopharmaceuticals closed on Friday at $12.11.

Latest Ratings for KERX

DateFirmActionFromTo
Jul 2015Cowen & CompanyDowngradesOutperformMarket Perform
Apr 2015Stifel NicolausMaintainsBuy
Mar 2015Stifel NicolausMaintainsBuy

View More Analyst Ratings for KERX
View the Latest Analyst Ratings

Posted-In: Graig C. Suvannavejh MLV & CoAnalyst Color Price Target Analyst Ratings

 

Related Articles (KERX)

Get Benzinga's Newsletters