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Healthcare analysts from Mizuho and Maxim weigh in on pharma giant Allergan plc Ordinary Shares (NYSE:AGN) and cell therapy firm Cytori Therapeutics Inc (NASDAQ:CYTX), following an earnings release and positive pipeline data, respectively. Both analysts remain bullish; let’s take a closer look:
Allergan plc Ordinary Shares
Pharma giant Allergan released earnings this morning before market open and the stock is already trading up 3 percent. Irina Rivkind Koffler of Mizuho highlights that the company posted revenue of $4.2 billion, in line with consensus estimates, and non-GAAP of $3.41, ahead of estimated of $3.34. The analyst credits strong Botox and Restasis sales for the strong earnings, as well as price increases in “mature brands.”
Allergan guided FY:16 net sales of $17 billion, slightly missing the analyst estimate of $17.7 billion. The company also guided R&D costs of $1.5 billion; higher than consensus of $1.3 billion. Even though both these figures miss the analyst consensus, Koffler doubts that anyone will care. Looking forward, all eyes will be on MDPF Restasis to treat chronic dry eye and Nebivolol/Valsartan to treat hypertension. The analyst comments, “The company remains highly productive in its pipeline but its most interesting assets in migraine and treatment-resistant depression may not emerge for a few more years.” Furthermore, Koffler is optimistic that the Pfizer deal will pull through.
Due the company’s earnings report, strong pipeline, and Pfizer deal, Koffler reiterates a Buy rating on the stock $354 price target. Koffler is a top-performing analyst. She has a 58% success rate recommending stocks with a +33.4% average one-year return.
According to TipRanks, all 8 analysts who have rated the stock have bullish sentiments. The average 12-month price target between these 8 analysts is $363.38, marking a 27% upside from current levels.
Cytori Therapeutics Inc
This morning, Cytori released positive data on ECCS-50, a pipeline drug to treat hand dysfunction. Jason Kolbert of Maxim Group explained the findings, noting, “In general, the data showed a sustained two year improvement in hand symptoms and function across multiple endpoints in patients with scleroderma following single administration of Cell Therapy.” Shares of the company are trading up more than 6%.
After collecting data for two years, the trial demonstrated improvements in patients for all four endpoints: “(1) Cochin Hand Function Score (CHFS); (2) Scleroderma Health Assessment Questionnaire; (3) Raynaud’s Condition Score (which assesses the severity of Raynaud’s phenomenon); and (4) hand pain, as assessed by a standard visual analogue scale.”
Kolbert also touches on the program’s managed access program for ECCS-50. He explains that program aims “to establish a Managed Access Program (MAP) in select countries across Europe, the Middle East, and Africa for patients with impaired hand function due to scleroderma. A MAP will allow Cytori, upon completion of the statutory legal and regulatory requirements, to offer patients and their healthcare providers access to ECCS-50 in advance of the product’s full marketing authorization in their respective countries.”
Due to the positive data release and managed access program, Kolbert reiterated a Buy rating on the stock with a $5 price target. According to TipRanks, both analysts who have covered Cytori in the last 3 months are bullish on the stock.