4 More Biotechs Leerink Is Looking At Post-Earnings

In a recent report, analysts at Leerink provided some insight on a ton of biotech stocks. Here is a look at four of them.

After Endo International plc - Ordinary Shares ENDP posted a modest earnings beat in the second quarter, with in-line sales and untouched guidance, the experts feel encouraged: “US generics remain strong with pricing/pipeline as tailwinds and ENDP appears to be gaining market traction for Xiaflex in Peyronie's.” The analysts reiterated an Outperform rating, trimming their price target by 4 percent to $96.

Karyopharm Therapeutics Inc KPTI announced its second-quarter results recently, also providing pipeline update. Management said it revised the ongoing randomized SOPRA Phase II study of selinexor in AML to trim the dose after observation of a higher rate of sepsis in patients treated with selinexor, versus physicians’ choice. While the news sent the stock down, Leerink analysts believe the sell-off was overdone, and see a buying opportunity in the tumble. The firm maintains an Outperform rating on the stock, but reduced its price target from $58 to $41 to reflect the results.

OvaScience Inc OVAS's earnings came in in-line with expectations, but revenue missed. To reflect these results, “the reiteration of guidance, and a new update that AUGMENT will be reimbursed by the national health provider in the United Arab Emirates (UAE),” the firm updated its model. In addition, the company announced that “a peer-reviewed article documenting improved embryo quality/pregnancy rates in AUGMENT-treated embryos over standard in-vitro fertilization (IVF) [including new results from "egg splitting"] will be published later this month.” The analysts reiterate an Outperform rating and $48 price target.

Zogenix, Inc. ZGNX reported results on Monday. Earnings matched estimates, and guidance suggests lower net losses than projected going forward. The company recently finished its trial design with the FDA for a ZX008 Phase III program in Dravet and reaffirmed its plans to roll out the study in the fourth quarter of the year. Encouraged by the new design of the study and the imminent readout of Phase Ib Relday (schizophrenia) data, the analysts reiterate an Outperform rating on the stock, boosting their price target from $24 to $27.