Mizuho Top Analyst Weighs in on Horizon Pharma PLC (HZNP) After Strong 2Q:16 Revenue Beat

Horizon Pharma PLC (NASDAQ:HZNP) just roared through its second-quarter earnings results. For the quarter, the drug maker came in with $257.4 million in revenue and $0.62 in non-GAAP earnings per share (EPS), compared to consensus estimates of $235 million and $0.50 in EPS. HZNP reiterates revenue guidance for the fiscal year of 2016 in the range of $1.025 to $1.050 billion, but reduces its earnings guidance from the prior range of $505 million to $520 million down to $495 million to $510 million. This cut in earnings guidance can be attributed to the $10 million EBITDA impact following the acquisition of global rights to Actimmune, an interferon gamma-1b pipeline drug designed to treat Friedreich’s Ataxia (FA), a degenerative neuro-muscular disorder.

In reaction, Mizuho analyst Irina Rivkind Koffler reiterates a Buy rating with a price target of $24, which marks a 14% increase from where the shares last closed.

Koffler comments, “The company did not announce any additional contracting for its primary care brands but we do see that its internal metric of average net realized price grew from $411 in 1Q:16 to $505 in 2Q:16, which suggests that its efforts to reduce its gross-to-net discounts are paying off.”

Until the earnings call, Koffler awaits results from Horizon’s newest mail-in rebates program, which will target patients whose plans don’t cover its drugs to take additional steps to offset copays. Meanwhile, Koffler also notes 14.9% price increases on Horizon’s primary care products in May, which are added to 9.9% increases already seen in the company’s first quarter.

According to TipRanks, Irina Rivkind Koffler is a top five-star analyst, having reached a high ranking of #16 out of 4,105 analysts. Koffler sustains a 62% success rate and yields 25% in her annual returns. When recommending HZNP, Koffler realizes 21.1% in average profits on the stock.

TipRanks analytics show HZNP as a Strong Buy. Based on 10 analyst ratings in the last 3 months, 9 rate a Buy while 1 maintains a Hold. The 12-month average price target is $33.43, marking a 59% upside from where the stock is currently trading.

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