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Thursday, Sep 26
"Not cheap" Pharmacyclics is headed higher on Ibrutinib potential: JPMorgan
- All aboard the Pharmacyclics (PCYC +8.6%) bandwagon. JPMorgan's Cory Kasimov is out with new coverage at Overweight.
- The stock "certainly isn't cheap," Kasimov notes (it's up more than 100% so far this year), but that doesn't stop him from predicting that it's about to get even less cheap: Price target is $142.
- The rationale: It's all about Ibrutinib (developed with JNJ) which William Blair says may just be the "largest product in hematology oncology history."
- "Investor appetite will persist based on the drug's multibillion-dollar sales potential," Kasimov says, adding that "on the regulatory front, ibrutinib is largely de-risked given its highly promising safety/efficacy profile and multiple Breakthrough Therapy designations." JPM expects approval this year.
- More on Ibrutinib and Breakthrough Therapy here