Horizon Pharma Plc (HZNP) Should Benefit From M&A - Mizuho

Mizuho analyst, Irina Koffler, trimmed her PT on Horizon Pharma (NASDAQ: HZNP) to $24 from $25 while maintaining her Buy rating. Despite seeing a challenging 2016, she thinks the company should benefit from M&A making the risk/reward is still attractive.

HZNP reported 1Q:16 revenue of $204.7M and EPS of $0.34 vs. consensus estimates of $200M and $0.30. Mgmt also reiterated its FY:16 revenue guidance of $1.025-1.050B and the percent contribution from 2Q:16 (22-23% of FY sales). Mgmt expects strength in Pennsaid and Krystexxa to compensate for weaker Duexis/Vimovo, which is now understood to be declining longer-term.

The analyst sees 2016 as challenging due to higher 75-80% gross to net discounts, back loaded guidance, and higher OpEx. Her estimate of $1.01B and $2.02 is below guidance and consensus. Nonetheless, she thinks the company should benefit from M&A and the risk/reward is still attractive.

For an analyst ratings summary and ratings history on Horizon Pharma click here. For more ratings news on Horizon Pharma click here.

Shares of Horizon Pharma closed at $15.27 yesterday.

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