In a research report issued Monday, Mizuho analyst Irina Rivkind Koffler downgraded shares of Eagle Pharmaceuticals Inc (NASDAQ:EGRX) from Buy to Neutral, while lowering the price target to $47 (from $66), after reviewing Eagle’s revenue generating opportunities and long-term growth. At these levels, the analyst believes that the stock is fairly valued. Eagle’s shares are currently falling, down around 12% to $39.45.
Koffler wrote, “The Treanda/Bendeka switch is a genuine success story for Eagle, but its other hospital launches like Ryanodex and Docetaxel have been more challenging. We are reminded that cost is still critical within this setting, and this insight has influenced our longer-term outlook on Bendeka and the rest of Eagle’s portfolio.”
Furthermore, “We worry that 2H:16 consensus estimates are too high, and the next catalysts may be less impactful: Eagle is meeting with FDA next month to discuss the next steps on Ryanodex EHS. We need to do more work on this opportunity but have remodeled our Ryanodex assumptions to incorporate risk-adjusted growth from label expansion. Eagle still remains on track to file its Alimta RTD ANDA in late 2016, but we are concerned about competition from other 505(b)(2) filers like AGN, who has already launched this type of product in EU. For this reason, we think that replicating a Bendeka-like agreement could be challenging here.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Irina Rivkind Koffler has a yearly average return of 25.2% and a 56% success rate. Koffler has a 109.6% average return when recommending EGRX, and is ranked #14 out of 3974 analysts.