Skip to main content

Market Overview

Amneal Analyst: Pharma Well-Positioned Ahead Of 2021 Generic Launches

Share:
Amneal Analyst: Pharma Well-Positioned Ahead Of 2021 Generic Launches

As part of its outlook for biopharma companies in 2021, Guggenheim Securities turned bullish on Amneal Pharmaceuticals Inc (NYSE: AMRX).

The Amneal Analyst: Dana Flanders upgraded Amneal from Neutral to Buy with a $5.50 price target. 

The Amneal Thesis: Revenue and margin performance from Amneal's generics business has been strong in 2020, buoyed by the return of Chirag and Chintu Patel as co-CEOs, Flanders said in a Monday note.

Amneal is poised to a see a reasonably strong generic launch year in 2021, with seven targeted complex launches, along with potential stability in a generic version of Merck & Co., Inc.'s (NYSE: MRK) hormonal contraceptive NuvaRing, and growth in generic Lidoderm, the analyst said.

These two generics will likely help offset the negative impact of Carafate competition, he said.

Related Link: The Week Ahead In Biotech: 2 IPOs Plus FDA Decisions On Moderna's COVID Vaccine And Drugs From Amgen, MacroGenics

Generics growth will track around the mid-single digits, with gross margins expected to improve by about 100 basis points, Flanders said. 

AvKare will likely benefit from annualized contribution and base business growth, while Rytary and Unithroid should see continued double-digit growth offset by a mid-2021 Zomig loss of exclusivity, the analyst said.

For 2021, Guggenheim expects revenues of $2.113 billion and adjusted EBITDA of $510 million, higher than the consensus estimates of $2.046 billion and $485 million, respectively.

"While the generics space remains fundamentally challenged, we believe the backdrop is improving, and we view AMRX (trading at ~7.3x 2021 EV/EBITDA) as well positioned relative to peers," the firm said.

AMRX Price Action: At last check, Amneal shares were rallying 6.39% to $4.33.

Related Link: 5 Biopharma Stocks Making Big Moves Monday

Latest Ratings for AMRX

DateFirmActionFromTo
Dec 2020GuggenheimUpgradesNeutralBuy
Nov 2020SVB LeerinkMaintainsMarket Perform
Oct 2020Piper SandlerMaintainsOverweight

View More Analyst Ratings for AMRX
View the Latest Analyst Ratings

 

Related Articles (AMRX)

View Comments and Join the Discussion!

Posted-In: Analyst Color Biotech Penny Stocks Upgrades Price Target Small Cap Analyst Ratings Movers Best of Benzinga

Latest Ratings

StockFirmActionPT
NIUDaiwa CapitalInitiates Coverage On41.5
QMCONorthland Capital MarketsInitiates Coverage On12.0
IBKRJefferiesInitiates Coverage On89.0
MRETFTD SecuritiesDowngrades18.5
SWKSGoldman SachsDowngrades135.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com