Piper Jaffray Reiterates Neutral on ISIS Pharmaceuticals, Inc. Following Licensing Agreement Announcement with Bayer

In a research report issued today, Piper Jaffray analyst Joshua Schimmer reiterated a Neutral rating on ISIS Pharmaceuticals, Inc. (NASDAQ:ISIS) with a price target of $68. The report follows the news that the company has entered into an exclusive license agreement with Bayer AG (ADR) (OTCMKTS:BAYRY) to develop and commercialize ISIS-FXIRx for the prevention of thrombosis.

Schimmer noted, “Bayer is a solid partner in the field given its participation in Xarelto commercialization with Johnson & Johnson (NYSE:JNJ). ISIS has been indicating a high level of interest in the FXI program following strong P2 data, so this partnership is generally expected. We already factor in meaningful economics from this program in our valuation (our 2022E includes $300M in royalty from FXI, ANGPTL3 and/or other earlier stage products which we don’t model more explicitly).”

Bottom line: “With a $7B mkt cap, we’d like to see a source of upside to our current assumptions, and a clearer sense of why ISIS thinks it can create value by partnering its lipid franchise, as opposed to our view that a larger partnership would be value-destructive for a collection of assets which should be positioned primarily for Orphan indications.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joshua Schimmer has a total average return of 12.3% and a 59.8% success rate. Schimmer has a 93.3% average return when recommending ISIS, and is ranked #307 out of 3590 analysts.

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