Horizon Pharma PLC (NASDAQ:HZNP), a biopharmaceutical company focused on improving patients’ lives by identifying, developing, acquiring and commercializing differentiated and accessible medicines that address unmet medical needs, today announced that its affiliate has entered into a definitive agreement with Boehringer Ingelheim International GmbH (“Boehringer Ingelheim”) to acquire the rights to interferon gamma-1b, which Boehringer Ingelheim commercializes under the trade names IMUKIN®, IMUKINE®, IMMUKIN® and IMMUKINE® in an estimated 30 countries primarily in Europe and theMiddle East.
“Obtaining worldwide rights for interferon gamma-1b solidifies our continued investment in the medicine, and pending the outcome of clinical studies investigating it in Friedreich’s ataxia and advanced solid tumors, such as kidney and bladder cancer, strengthens our ability to expand its potential global use,” said Timothy P. Walbert, chairman, president and chief executive officer, Horizon Pharma plc.
Under the terms of the agreement, Horizon Pharma paid Boehringer Ingelheim EUR 5 million upon signing and will pay EUR 20 million upon closing for the rights for interferon gamma-1b in all territories outside of the United States, Canada and Japan. Horizon Pharma and Boehringer Ingelheim expect to close the transaction by year-end 2016, subject to the satisfaction of closing conditions.
Under the terms of a separate agreement with an undisclosed third party, Horizon Pharma also licensed the U.S., European and Canadian intellectual property rights for interferon gamma-1b for the treatment of Friedreich’s ataxia. Interferon gamma-1b is currently not indicated or approved for the treatment of Friedreich’s ataxia.
On May 5, 2016, the Company announced that it completed target enrollment of 90 patients in the Phase 3, randomized, double-blind, placebo controlled STEADFAST study evaluating ACTIMMUNE in patients with Friedreich’s ataxia. Top-line results from the trial are expected by the end of 2016.
As a result of the agreement with Boehringer Ingelheim, Horizon Pharma will immediately begin investing in related manufacturing, supply chain, regulatory and commercial activities for interferon gamma-1b. As a result, the Company anticipates a reduction to 2016 adjusted EBITDA of approximately $10 million versus prior guidance.(Original Source)
Shares of Horizon closed yesterday at $15.33, up $0.15 or 0.99%. HZNP has a 1-year high of $39.49 and a 1-year low of $12.86. The stock’s 50-day moving average is $15.59 and its 200-day moving average is $17.87.
On the ratings front, Horizon has been the subject of a number of recent research reports. In a report issued on May 10, Mizuho analyst Irina Rivkind Koffler maintained a Buy rating on HZNP, with a price target of $24, which implies an upside of 56.6% from current levels. Separately, on the same day, Brean Murray Carret’s Difei Yang reiterated a Buy rating on the stock and has a price target of $30.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Irina Rivkind Koffler and Difei Yang have a total average return of 26.0% and -14.4% respectively. Koffler has a success rate of 57.3% and is ranked #9 out of 3842 analysts, while Yang has a success rate of 31.6% and is ranked #3813.
The street is mostly Bullish on HZNP stock. Out of 9 analysts who cover the stock, 8 suggest a Buy rating and one recommends to Hold the stock. The 12-month average price target assigned to the stock is $28.00, which represents a potential upside of 82.6% from where the stock is currently trading.
Horizon Pharma Plc is a specialty biopharmaceutical company, which engages in the business of identifying, developing, acquiring and commercializing differentiated products that address unmet medical needs. It markets a portfolio of products in arthritis, inflammation and orphan diseases. The company was founded on December 20, 2011 and is headquartered in Dublin, Ireland.