Q4 results confirmed a strong launch for Imbruvica despite just six weeks on the market and approval in the smaller indication of relapsed/refractory mantle cell lymphoma, says analyst Robert Drbui, reiterating his Buy rating and raising the PT to $166 from $137. "We believe off-label usage in the larger chronic lymphocytic leukemia indication ahead of last week's approval was clearly evident, suggesting the strong underlying demand in this population."
"While lack of visibility in R&D spend may represent potential risk to estimates, we believe our model captures the cost of the ongoing hematology program. Furthermore, we believe the higher expense projections are offset by IP on Imbruvica extended out to 2035 versus our 2027 estimate, and lower our long term tax rate assumption to 25% versus our prior estimate of 30%."
PCYC +2.2% premarket