Akorn's Current Price Is Nuts
Andrew Walker, CFA • 10 Comments
Andrew Walker, CFA • 10 Comments
Thu, Dec. 1, 12:57 PM
- Goldman Sachs initiates coverage on Akorn (AKRX -4.5%) with a Sell rating and $20 (0% upside) price target. Four other shops recently downgraded the stock with revised price targets ranging from $22 - 24.
- Deutsche Bank rates it a Buy with a $28 (40% upside) price target as does Jefferies with a $24 price target.
Mon, Nov. 28, 5:49 PM
- Akorn (NASDAQ:AKRX) perks up 2% after hours on light volume in response to its announcement that the U.S. Patent Office's Patent Trial and Appeals Board (PTAB) ruled in its favor in its inter partes review of U.S. Patent No. 6,114,319 covering Alcon's (NYSE:NVS) Durezol (difluprednate ophthalmic emulsion).
- The ruling paves the way for full FDA approval of Akorn's Abbreviated New Drug Application (ANDA) for a generic version of the drug. It was the first to file an ANDA so it will have a 180-day period of market exclusivity after approval before other generics can enter the market.
- According to IMS Heath, Durezol sales in the U.S. are ~$190M.
Mon, Nov. 7, 2:27 PM
- Deutsche Bank upgrades Akorn (NASDAQ:AKRX) to Buy from Hold. PT remains $28. Implied upside 38%.
- "AKRX shares are down 20% since 11/3, when the company reported 3Q results and news emerged about a DOJ investigation into suspected price collusion involving generic companies that could result in charges by year-end.
- "The quarter itself was decent, although AKRX announced that FDA clearance of its Decatur injectables facility will require a re-inspection, the timing of which is uncertain.
- "Unlike other generic stocks, AKRX shares have not begun to recover since 11/3, which we believe could be tied to concerns about Decatur on top of generic industry risks. Given management’s confidence that clearing Decatur is a when not an if, we like the set up for the stock from here, and are moving to a Buy rating... We also believe that management is shareholder friendly and is doing the right things to position AKRX for long-term value creation. An under-levered balance sheet (net debt/EBITDA of ~1.3x) creates some optionality as well."
Fri, Nov. 4, 6:00 AM
- In a note this morning, Credit Suisse addresses what exactly was new in yesterday's Bloomberg article about potential price-fixing charges against generic drugmakers:
- "The investigation itself wasn’t news, most generics manufacturers had disclosed receipt of subpoenas, but we sense most investors felt the investigation wouldn’t come to anything. This afternoon’s news that charges could be brought by year-end obviously brought immediacy to the issue and at a time when investor confidence is fragile. Investors have been concerned the consolidating purchasing consortiums of drug chains and wholesalers (top-4 buying groups now represent 84% of purchasing in the U.S.) have used their buying power at the manufacturers expense. Regardless of the outcome of the investigation, the ongoing government scrutiny could hinder generic manufacturers' counter moves especially in terms of price exploration for individual products. That said, and appreciating the matter can’t be taken lightly, we think it would be premature to conclude this signals a dramatic change in the generic drug industry’s landscape over the long-term. There continue to be regulatory and manufacturing capacity issues which work in the generic manufacturers' favor."
- Among the hardest hit were LCI (-26.6%), ENDP (-19.5%), IPXL -19.5%, AKRX -18%. Healthcare ETF XLV was down just 1%. Large-cap generic manufacturers such as MYL and TEVA were down 6-10%.
Thu, Nov. 3, 7:16 AM
Wed, Nov. 2, 5:30 PM
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Fri, Sep. 16, 12:07 PM
- C.R. Bard (NYSE:BCR) upgraded to Outperform from Market Perform by Wells Fargo.
- DexCom (NASDAQ:DXCM) upgraded to Buy from Hold by Desjardins. Downgraded to Neutral from Buy with a $92 (1% downside risk) price target by BTIG Research.
- Alimera Sciences (NASDAQ:ALIM) upgraded to Outperform from Market Perform by Cowen & Company.
- Seattle Genetics (NASDAQ:SGEN) upgraded to Neutral from Sell by Goldman Sachs. Price target raised to $47 (13% downside risk) from $30.
- Akorn (NASDAQ:AKRX) upgraded to Overweight from Neutral by Piper Jaffray. Price target raised to $34 (19% upside) from $33.
- Community Health Systems (NYSE:CYH) upgraded to Positive from Neutral by Susquehanna. Price target raised to $18 (66% upside).
- AstraZeneca (NYSE:AZN) upgraded to Buy from Hold by Jefferies. Price target raised to GBX 5,800 (14% upside) from GBX 5,400. Downgraded to Neutral from Outperform with a GBX 5,200 (2% upside) price target by BNP Paribas.
- McKesson (NYSE:MCK) downgraded to Neutral from Buy by Goldman Sachs. Price target lowered to $189 (15% upside) from $210.
- Cardinal Health (NYSE:CAH) downgraded to Neutral from Buy by Goldman Sachs. Price target lowered to $83 (8% upside) from $90.
- Novavax (NASDAQ:NVAX) downgraded to Neutral from Outperform by Wedbush. Price target lowered to $2 (44% upside) from $14. Downgraded to Neutral from Buy by Citigroup. Price target lowered to $1.50 (8% upside) from $12. Downgraded to Neutral from Overweight by JPMorgan and Piper Jaffray.
- Raptor Pharmaceutical (NASDAQ:RPTP) downgraded to Market Perform from Outperform by Cowen & Company.
- Vitae Pharmaceuticals (NASDAQ:VTAE) downgraded to Market Perform from Outperform by BMO Capital.
- Atara Biotherapeutics (NASDAQ:ATRA) downgraded to Sell from Neutral by Goldman Sachs. Price target lowered to $16 (18% downside risk) from $23.
- GlaxoSmithKline (NYSE:GSK) downgraded to Underperform from Neutral with a GBX 1,520 (6% downside risk) price target by BNP Paribas.
- Applied Genetic Technologies (NASDAQ:AGTC) downgraded to Neutral from Buy by Roth Capital. Price target lowered to $12 (34% upside) from $34. Downgraded to Hold from Buy by Cantor Fitzgerald. Price target lowered to $15 (68% upside) from $32.
- Cepheid (NASDAQ:CPHD) downgraded to Neutral from Outperform by Baird.
Thu, Aug. 18, 9:00 AM
Thu, Aug. 4, 7:21 AM
Wed, Aug. 3, 5:30 PM
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Mon, May 16, 4:52 PM
- Akorn (NASDAQ:AKRX): Q1 EPS of $0.54 in-line.
- Revenue of $268.34M (+18.0% Y/Y) beats by $0.78M.
- Shares -0.1%.
Mon, May 16, 4:43 PM
- Akorn (NASDAQ:AKRX): Q1 EPS of $0.54 in-line.
- Revenue of $268M (+17.9% Y/Y) beats by $0.44M.
Tue, May 10, 9:16 AM
Tue, May 10, 6:57 AM
- Akorn (NASDAQ:AKRX): FY15 EPS of $2.02.
- Revenue of $985.07M (+77.5% Y/Y)
Tue, Mar. 22, 12:41 PM
Tue, Mar. 22, 11:23 AM
- On a preliminary basis, Akorn's (AKRX +37.7%) 2015 EPS was $1.14 on revenues of $985M. Non-GAAP EPS was $1.93, non-GAAP EBITDA was $455M and CF Ops was $345M.
- The company launched 12 new products during the year. It received 15 product approvals from the FDA along with two tentative approvals.
- It expects to file its restated 2014 financials and its delinquent 2015 financials by May 9.
- 2016 Guidance: Revenues: $1,060M - 1,080M (+9%); EPS: $1.56 - 1.66 (+41%); Non-GAAP EPS: $2.10 - 2.20 (+11%); Non-GAAP EBITDA: $485M - 505M (+9%).
- Shares are up 38% on more than double normal volume.
- Update: In a statement released on May 6, the company says it will file its 2015 10-K on Monday, May 9 and its 10-Q for Q1 2016 after the close on May 16. Management will host a conference call at 10:00 am ET on Tuesday, May 17 to discuss its Q1 results and provide a business update.