Market Overview

UPDATE: JMP Securities Reiterates on Depomed Following Acquisition of Migraine Asset


In a report published Wednesday, JMP Securities analyst Jason N. Butler reiterated a Market Outperform rating on Depomed (NASDAQ: DEPO), and raised the price target from $10.00 to $11.00.

In the report, JMP Securities noted, “Acquisition of migraine asset makes strategic and financial sense; reiterate Market Outperform rating and increasing price target from $10 to $11 on Depomed, Inc. Yesterday, Depomed announced the acquisition of CAMBIA, a formulation of the NSAID diclofenac approved for the treatment of migraine. Depomed will pay Nautilus Neurosciences $48.7MM upfront to acquire the product, representing ~2.7x the current annualized sales run rate, and stated that the transaction is expected to be immediately accretive. We view the product as a good strategic fit for Depomed, leveraging the company's established neurology-focused sales organization. We have updated our model to include sales of CAMBIA, which increases our 2014 and 2015 revenue estimates by 23% and 21%, respectively. We are increasing our price target from $10 to $11, now including CAMBIA in our sum-of-the-parts NPV analysis.”

Depomed closed on Tuesday at $8.34.

Latest Ratings for DEPO

Jul 2018Janney CapitalUpgradesNeutralBuy
Dec 2017MizuhoUpgradesNeutralBuy
Nov 2017UBSMaintainsNeutral

View More Analyst Ratings for DEPO
View the Latest Analyst Ratings

Posted-In: Jason N. Butler JMP SecuritiesAnalyst Color Price Target Analyst Ratings


Related Articles (DEPO)

View Comments and Join the Discussion!

Bill Ackman Stands Firm, Noting, "Enron Also Had Audited Financial Statements"

UPDATE: JMP Securities Initiates Coverage on Cepheid on Market Leader Position