Market Overview

Roth Capital Upgrades ANI Pharmaceuticals To Buy On Valuation

Share:
Related ANIP
20 Biggest Mid-Day Losers For Thursday
Mid-Day Market Update: Navigator Holdings Gains Following Q4 Results; Endeavour Silver Shares Slide
Related MRK
Leerink Presents: Your 2017 Biopharma Catalyst Tracker
Adam Feuerstein Talks Vulnerable Pharmaceuticals, Drug Pricing Under Trump
The Vetr community has upgraded $MRK to 3-Stars. (Vetr)
  • On Monday, Roth Capital upgraded shares of ANI Pharmaceuticals Inc (NASDAQ: ANIP) from Neutral to Buy.
  • After last week’s ~25 percent decline in the stock price, the experts find the valuation compelling once again.
  • Shares of ANI Pharmaceuticals continue to fall on Monday trading.

In a report issued Monday, analyst Scott R. Henry shares a few reasons to revalue the shares, for which he now has a $60.00 price target, which implies an upside of almost 50 percent. Among them, investors can count the further pipeline expansion coming from corticotropin, market share gains for EEMT, and a “stabilization of current negative sentiment.”

In the analyst’s opinion, the current valuation does not appropriately reflect ANI’s “sound fundamentals.” While some risks associated with the EEMT franchise remain, the firm thinks the risk profile is acceptable at current stock prices -- below $50 a share.

Let’s get back to the reasons for the upgrade.

1)   The anti-drug pricing sentiment triggered by Hillary Clinton’s remarks drove the stock price down, creating a buying opportunity for long-term investors.

1)   ANI paid Merck & Co., Inc. (NYSE: MRK) roughly $75 million for “an approved NDA for corticoptropin (similar to Acthar Gel from Mallinckrodt - for the treatment of multiple sclerosis, rheumatic disorders, dermatologic diseases, and other ailments).” The firm estimates that the compound has a yearly revenue potential of ~$200 million. Management targets to launch it in the second half of 2017. “Key assumptions include a ~$1 billion market, ~25% share, and a ~25% discount to the brand. This pipeline compound creates significant upside tail outcomes for ANIP shareholders,” the report assures.

2)   The EEMT franchise is strengthening.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Latest Ratings for ANIP

DateFirmActionFromTo
Aug 2016OppenheimerMaintainsOutperform
Jul 2016OppenheimerUpgradesOutperformPerform
Jun 2016Raymond JamesInitiates Coverage onStrong Buy

View More Analyst Ratings for ANIP
View the Latest Analyst Ratings

Posted-In: Analyst Color Biotech Long Ideas Health Care Small Cap Analysis Price Target Reiteration Analyst Ratings

 

Related Articles (MRK + ANIP)

View Comments and Join the Discussion!