Analysts Have Conflicting Sentiments on These Healthcare Companies: Amag Pharmaceuticals (AMAG), Rhythm Pharmaceuticals Inc (RYTM) and Oramed Pharmaceuticals (ORMP)


Analysts have been eager to weigh in on the Healthcare sector with new ratings on Amag Pharmaceuticals (AMAG), Rhythm Pharmaceuticals Inc (RYTM) and Oramed Pharmaceuticals (ORMP).

Amag Pharmaceuticals (AMAG)

In a report released today, David Buck from B.Riley FBR assigned a Buy rating to Amag Pharmaceuticals, with a price target of $20.50. The company’s shares opened today at $16.81.

Buck noted:

“We lower our price target from $29 per share to $20.50 per share for AMAG Pharmaceuticals (AMAG) which we keep at a Buy. This note updates our 2019E outlook for EBITDA and other metrics as AMAG re-affirmed ~$50M in negative EBITDA. AMAG announced acquisition of Perosphere Pharmaceuticals to gain Phase III-ready anticoagulant reversal agent, ciraparantag. Ciraparantag has FDA Fast Track review designation and should have patent protection through 2034. AMAG announced a definitive agreement to purchase Perosphere with an expected closing in 1Q19. Initial payment is a $50M upfront payment plus assumption of approximately $18.2M in other liabilities including $12M in debt.”

According to TipRanks.com, Buck is a 2-star analyst with an average return of -0.2% and a 39.2% success rate. Buck covers the Healthcare sector, focusing on stocks such as Spectrum Pharmaceuticals, Supernus Pharmaceuticals, and Correvio Pharma Corp.

Currently, the analyst consensus on Amag Pharmaceuticals is a Hold with an average price target of $21.

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Rhythm Pharmaceuticals Inc (RYTM)

In a report released today, Alan Carr from Needham maintained a Buy rating on Rhythm Pharmaceuticals Inc, with a price target of $42. The company’s shares opened today at $27.68.

Carr noted:

“Rhythm hosted an event for analysts and investors in NYC yesterday and announced initiation of a Phase 3 trial of setmelanotide in Bardet Biedl Syndrome (BBS) and Alstrom Syndrome (AS). Design and endpts are generally similar to the ongoing Phase 3 trials in POMC and LepR Deficiency. Mgmt plans to provide guidance on timing for top-line results from the 1 yr trial in early 2019. KOLs Lee Kaplan (Harvard) and Robert Hows (Marshfield Clinic) discussed genetic obesity in the context of the overall obesity epidemic and reviewed the unmet need in Bardet Biedl Syndrome. Given impressive setmelanotide impact on appetite and weight in Phase 2 testing and the absence of any treatment options for rare genetic obesity diseases, we expect a favorable development and commercial outcome for Rhythm. Reiterate BUY.”

According to TipRanks.com, Carr is a 3-star analyst with an average return of 1.8% and a 39.9% success rate. Carr covers the Healthcare sector, focusing on stocks such as ACADIA Pharmaceuticals Inc, Iterum Therapeutics Plc, and Crispr Therapeutics AG.

Currently, the analyst consensus on Rhythm Pharmaceuticals Inc is a Moderate Buy with an average price target of $40.

Oramed Pharmaceuticals (ORMP)

B.Riley FBR analyst Andrew D’silva maintained a Hold rating on Oramed Pharmaceuticals yesterday and set a price target of $5. The company’s shares opened today at $3.98, close to its 52-week low of $3.90.

D’silva observed:

“Oramed Pharmaceuticals (ORMP) filed its 10-K for FY18 (FYE: August) on Wednesday, 11/28. The company does not host a conference call. ORMP’s top-line/EPS came in at $0.6M/($0.18), compared to our/consensus estimates of $0.6M/($0.29) and $0.6M/($0.28), respectively. Revenues were tied to milestone payments received through ORMP’s out-license agreement with Technologies (HTIT), amortized through June 2023. ORMP’s EPS beat was primarily due to lower R&D expense than our estimates called for. Meanwhile, ORMP remains well capitalized to meet its near-term objectives and exited 4Q18 with $46.8M in cash/ investments, no debt, and a current ratio of 6.8:1.0.”

According to TipRanks.com, D’silva is a 4-star analyst with an average return of 6.0% and a 37.4% success rate. D’silva covers the Healthcare sector, focusing on stocks such as EyePoint Pharmaceuticals Inc, Imprimis Pharmaceuticals, and Sorrento Therapeutics.

Oramed Pharmaceuticals has an analyst consensus of Moderate Buy, with a price target consensus of $25.

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