Analysts at Argus Research turned bullish on Bioverativ Inc BIVV as the company could establish itself as a profitable biotech within the hemophilia and blood disorders space. The firm's Jasper Hellweg upgraded Bioverativ's stock from Hold to Buy.
Bioverativ was spun-off by Biogen Inc. BIIB in early 2017 so it could separate its global hemophilia business into an independent, publicly traded global biotechnology company.
Bioverativ's commercial portfolio includes two products for hemophilia which is a disease that affects more than 400,000 people, Hellweg commented in a note. The company's Eloctate for hemophilia A and Alprolix for hemophilia B can be used to target a $10 billion global market.
Eloctate and Alprolix offer a key differentiation to patients versus competing products as it allows for less frequent dosing, the analyst noted. Although the hemophilia market is very competitive, the company's second quarter earnings report in early August did show a 28.8 percent increase in overall revenue from these products.
Meanwhile, Bioverativ's other products in its pipeline are still in the preclinical stage so investor shouldn't expect these products to provide any sort of meaningful catalyst in the near-term, Hellweg said. But even when the products are brought to the market, such as a treatment for a sickle-cell disease, it will face intense competition in the market.
The acquisition of True North is another element to the bullish story as it offers Bioverativ a potential treatment for cold agglutinin disease and there are currently no approved therapies to address the need.
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