Brean Capital Lifts Price Target for Horizon Pharma PLC Following Acquisition of Hyperion

In a research report published Tuesday, Brean Capital analyst Difei Yang maintained a Buy rating on Horizon Pharma PLC (NASDAQ:HZNP) and raised the price target to $33 (from $27), following the news that the company will acquire all of the issued and outstanding shares of Hyperion Therapeutics Inc's (NASDAQ:HPTX) common stock for $46.00 per share in cash or approximately $1.1 billion on a fully diluted basis. 

Yang noted, "We view Horizon Pharma's acquisition of Hyperion Therapeutics as being reasonably priced for both companies. Hyperion's Ravicti is a differentiated drug treating ultra-orphan disease, urea cycle disorder. The acquisition once again demonstrates Horizon Pharma's execution capabilities in deal making and we believe management's guidance on annualized cost savings of $50 million is a conservative."

Bottom line: "We like the Hyperion deal and believe management guidance of $50 million annualized cost savings from the deal is being very conservative. We used a blend of EV/Sales and P/E to derive our target price."

According to, which measures analysts' and bloggers' success rate based on how their calls perform, analyst Difei Yang has a total average return of 15.3% and a 64.7% success rate. Yang has a 59.4% average return when recommending HZNP, and is ranked #585 out of 3560 analysts.


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