Horizon Therapeutics Does Not Have Meaningful Upside, Analyst Initiating Coverage Says

HC Wainwright initiated coverage on Horizon Therapeutics plc HZNP with a Neutral rating and a price target of $74.
The analyst writes that Horizon deserves credit for executing management's vision of building a rare disease powerhouse.
Moreover, it's been a remarkable transformation for the company as it has emerged from the shadow of its controversial legacy primary care business to establish a leading orphan drug business led by Tepezza for thyroid eye disease (TED) and Krystexxa for gout.
Though Tepezza's success allowed the company to shift from specialty pharma to biotech, the product has shown signs of a slowdown this year, putting pressure on Horizon shares.
Furthermore, Tepezza could face competition in the coming years that would put additional pressure on the franchise.
HC Wainwright sees Tepezza peak sales at $2.2 billion, well below the company's expectations of $3.5 billion.
Last year's $3 billion acquisition of Viela Bio added three new products—Uplizna, daxdilimab, and dazodalibep. However, the analyst lacks conviction that these products will be more than modest growth drivers.
Without more conviction that Tepezza's growth can resume its initial trajectory, HC Wainwright does not see a meaningful upside in shares at current levels.
Price Action: HZNP shares are up 0.82% at $62.83 on the last check Tuesday.