There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Arena Pharma (ARNA) and Blueprint Medicines (BPMC) with bullish sentiments.
Arena Pharma (ARNA)
Needham analyst Alan Carr maintained a Buy rating on Arena Pharma today and set a price target of $60. The company’s shares opened today at $39.46.
Carr noted:
“Arena announced today a license agreement w/ the development and commercialization of ralinepag. Arena recently initiated Phase 3 development of the drug in Pulmonary Arterial Hypertension (PAH) and has been guiding for NDA submission around 2021. Arena will receive $800M cash upfront and is eligible to receive up to an additional $400M in milestone payments and double digit royalties on WW sales. Arena pivots to autoimmunity as a result of the transaction, w/ etrasimod taking an even more important role in the company. Mgmt plans to use proceeds from the transaction to invest more extensively in the drug. Overall, we view the transaction as favorable. United Therapeutics is an established leader in PAH and Arena can focus on aggressive development of etrasimod, which we view as a differentiated and valuable S1P1 receptor agonist. BUY.”
According to TipRanks.com, Carr is a 3-star analyst with an average return of 1.1% and a 38.3% success rate. Carr covers the Healthcare sector, focusing on stocks such as Biohaven Pharmaceutical Holding Co Ltd, ACADIA Pharmaceuticals Inc, and Iterum Therapeutics Plc.
Currently, the analyst consensus on Arena Pharma is a Moderate Buy with an average price target of $65, implying a 64.7% upside from current levels. In a report issued on November 7, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $65 price target.
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Blueprint Medicines (BPMC)
Cowen & Co. analyst Marc Frahm reiterated a Buy rating on Blueprint Medicines today. The company’s shares opened today at $55.96, close to its 52-week low of $52.16.
According to TipRanks.com, Frahm has 0 stars on 0-5 star ranking scale with an average return of -16.4% and a 15.0% success rate. Frahm covers the Healthcare sector, focusing on stocks such as Merrimack Pharmaceuticals, Adaptimmune Therapeutics, and Gritstone Oncology Inc.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Blueprint Medicines with a $100.33 average price target.
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