Credit Suisse on Thursday issued a report on Pharmacyclics, Inc. PCYC a day after the company soared 17 percent following acquisition rumors. Credit Suisse downgraded Pharmacyclics from Outperform to Neutral and raised its price target from $163 to $233.
A report issued by Bloomberg said that Pharmacyclics may be bought out for $17-18 billion. Credit Suisse believes that this properly values Pharmacyclics's drug pipeline, with the most attractive asset being Imbruvica which gained FDA approval in January.
Regarding the pharmaceutical company's pipeline analysts Jason Kantor, Jeremiah Shepard, Ravi Mehrotra and Anuj Shah wrote, "Imbruvica is one of the most exciting new drugs in lymphoma/leukemia with FDA approvals in CLL, MCL, and WM. It is dosed chronically, well tolerated, and generates long-lasting progression-free and overall survival benefit."
The analysts note that no other drugs have emerged as competition yet.
Shares of Pharmacyclics recently traded at $215.64, down 1.46 percent.
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