Mizuho Securities Remains Positive on Horizon Pharma PLC Following Dispute with Express Scripts

Shares of Horizon Pharma PLC (NASDAQ:HZNP) plunged nearly 20% today following a lawsuit filed by Express Scripts and recent allegations. Express Scripts cut the pharmacy Linden Care out of its network, saying that Linden dispenses mainly Horizon products and is in violation of its contract with Express Scripts.

However, Mizuho Securities analyst Irina Rivkind Koffler believes that Linden Care financial impact to Horizon is minimal. The analyst noted, “We spoke with management and learned that Linden processes ~150-200 prescriptions for Duexis, Vimovo, Pennsaid, and Rayos combined, per day. The ESRX prescriptions flowing through Linden Care represent only 5% of Horizon’s business and are the least profitable since they need to be bought down by Horizon.”

Furthermore, “Linden Care has filed a lawsuit against ESRX, and there could be a decision to stay the case tomorrow, which would provide Horizon 1-3 months to identify alternative pharmacies. Horizon aims to expand its current network of 5-10 pharmacies to 20 pharmacies over time and management does not expect ESRX to shut off every pharmacy working with Horizon.”

Koffler reiterated a Buy rating on shares of Horizon Pharma, with a price target of $34, which represents a potential upside of 88.9% from where the stock is currently trading. Koffler is one of Horizon’s biggest bulls, and she is also one of the top analysts rated who cover the stock.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Irina Rivkind Koffler has a total average return of 44.6% and a 69% success rate. Koffler has a 24.3% average return when recommending HZNP, and is ranked #3 out of 3840 analysts.

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