Market Overview

Analyst: Radius Health Could Advance 50% With Osteoporosis Treatment, Breast Cancer Pipeline

Analyst: Radius Health Could Advance 50% With Osteoporosis Treatment, Breast Cancer Pipeline
Related RDUS
24 Stocks Moving In Thursday's Pre-Market Session
The Daily Biotech Pulse: FDA Nod For Mallinckrodt's Pain Drug, AbbVie-Neurocrine Report Positive Elagolix Results

Radius Health Inc (NASDAQ: RDUS) has multiple catalysts that could drive near-term upside in the shares of the company, according to Morgan Stanley. 

Radius Health is an integrated biopharma company that specializes in therapies for osteoporosis, oncology and endocrine diseases.

The Analyst

Morgan Stanley analyst Matthew Harrison initiated coverage of the company with an Overweight rating and a $57 price target.

The Thesis

Radius is set to launch Tymlos, a bone builder for women with osteoporosis, Harrison said in a Monday note.

Despite Eli Lilly and Co (NYSE: LLY)'s presence in the market with Forteo, which fetched the company $1 billion in sales and is exposed to generic competition in 2019, Harrison said Tymlos' pricing is 40 percent lower than Forteo's — and convenience could help it grab share.

"Key factors such as formulary wins with Express Scripts Holding Company (NASDAQ: ESRX) (9-12 percent of the market) and growing Medicare coverage (39 percent moving to 50-percent-plus in 2018) will accelerate the launch into 2H18," the analyst said.

Unlike the prevalent injectable therapies, the Radius patch could drive market growth, Harrison said. He estimates Radius could achieve 50 percent market share at peak, with $1 billion in peak sales in the late 2020s.

If the patch form of Tymlos succeeds, the analyst said the company can achieve $2 billion in peak sales, driving almost a four-fold potential return on Radius.

The consensus estimates for Radius have yet to account for the potential of elacestrant, a new agent for women who have not found success with prior breast cancer treatment, Harrison said. 

The Price Action

Radius Health shares are down over 10 percent over the past year. Shares were up 3.07 percent at the time of publication Monday at $39.93. 

Related Links:

Argus: Bioverativ Shares Fully Valued After Sanofi Buyout Offer

What You Need to Know About Puma Biotech's 25% Slide

Latest Ratings for RDUS

Nov 2018JP MorganMaintainsOverweightOverweight
Oct 2018Morgan StanleyMaintainsOverweightOverweight
Jul 2018Bank of AmericaMaintainsBuyBuy

View More Analyst Ratings for RDUS
View the Latest Analyst Ratings

Posted-In: breast cancerAnalyst Color Biotech Health Care Price Target Initiation Analyst Ratings General Best of Benzinga


Related Articles (ESRX + LLY)

View Comments and Join the Discussion!

Latest Ratings

CNPRBC CapitalUpgrades34.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Principal Financial's Earnings: A Preview

Analysis: Government 5G Network Unlikely, Despite Reports