- HC Wainwright initiated reporting Horizon Therapeutics plc HZNP with a neutral rating and a target price of $74.
- The analyst writes that Horizon deserves credit for executing on management’s vision to build a rare disease powerhouse.
- Additionally, it was a notable transformation for the company as it emerged from the shadow of its controversial legacy primary care business to establish a leading orphan drug business, that of Tepezza for thyroid eye disease (TED) and Krystexxa for gout to be led.
- Though Tepezza’s success allowed the company to transition from specialty pharma to biotech, the product has shown signs of slowing this year, putting pressure on Horizon’s shares.
- Additionally, Tepezza could face competition in the years to come that would put additional pressure on the franchise.
- HC Wainwright sees Tepezza’s peak sales at $2.2 billion, well below the company’s expectations of $3.5 billion.
- Viela Bio’s $3 billion acquisition last year added three new products — Uplizna, daxdilimab, and dazodalibep. However, the analyst isn’t convinced these products will be anything more than modest growth drivers.
- Without further conviction that Tepezza’s growth can resume its original course, HC Wainwright sees no significant upside potential for the shares at current levels.
- Price promotion: HZNP shares are up 0.82% to $62.83 on Tuesday’s latest check.
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