Skip to main content

Market Overview

UPDATE: J.P. Morgan Downgrades ViroPharma Following Announcement of Acquisition by Shire

Share:

In a report published Tuesday, J.P. Morgan analyst Geoff Meacham downgraded the rating on ViroPharma (NASDAQ: VPHM) from Overweight to Neutral, but raised the price target from $45.00 to $50.00.

In the report, J.P. Morgan noted, “We are downgrading shares of VPHM to Neutral from Overweight. This is based on the announced Shire (rated Overweight by JPM European Healthcare analyst James Gordon) acquisition of ViroPharma for $50/share. Overall, we believe the transaction makes sense from a strategic perspective and does not come as a complete surprise, given synergies and recent news reports that ViroPharma was in an auction process (source: Bloomberg). The addition of Cinryze for prophylaxis complements Shire's current hereditary angioedema (HAE) business, which consists of Firazyr for acute treatment. Indeed, Shire expects cost synergies of $150M by 2015. Since Cinryze and Firazyr address different segments of the HAE market, we do not anticipate antitrust issues; the transaction could close as early as YE13. As such, we see little room for upside, and we doubt another bidder emerges. We are increasing our Dec 2014 PT to $50/share, which is the deal price, and downgrading VPHM shares to Neutral from Overweight.”

ViroPharma closed on Monday at $49.42.

Latest Ratings for VPHM

DateFirmActionFromTo
Nov 2013Stifel NicolausDowngradesBuyHold
Nov 2013JP MorganDowngradesOverweightNeutral
Nov 2013PiperJaffrayDowngradesOverweightNeutral

View More Analyst Ratings for VPHM
View the Latest Analyst Ratings

 

Related Articles (VPHM)

View Comments and Join the Discussion!

Posted-In: Geoff Meacham J.P. MorganAnalyst Color Downgrades Analyst Ratings

Latest Ratings

StockFirmActionPT
FIBKStephens & Co.Downgrades
LEAFCanaccord GenuityDowngrades8.5
AGMSidoti & Co.Downgrades115.0
KEXGabelli & Co.Downgrades
OCGNCantor FitzgeraldDowngrades11.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com