HZNP

Horizon Pharma PLC

Healthcare


Presented:04/15/2015
Price:$29.50
Cap:$3.93B
Current Price:$116.30
Cap:$26.63B

Presented

Date04/15/2015
Price$29.50
Market Cap$3.93B
Ent Value$4.06B
P/E RatioN/A
Book Value$4.36
Div YieldN/A
Shares O/S133.29M
Ave Daily Vol2,990,000
Short Int7.31%

Current

Price$116.30
Market Cap$26.63B
Horizon Pharma plc, a specialty biopharmaceutical company, engages in identifying, developing, acquiring or in-licensing, and commercializing medicines for the treatment of arthritis, pain, inflammatory, and/or orphan diseases in the United States and internationally. It offers ACTIMMUNE for reducing the frequency and severity of serious infections associated with chronic granulomatous disease; DUEXIS, a proprietary tablet formulation for the relief of signs and symptoms of rheumatoid arthritis (RA) and osteoarthritis (OA), and to decrease the risk of developing upper gastrointestinal ulcers in patients who are taking ibuprofen for these indications; PENNSAID for the treatment of pain of OA of the knee; and VIMOVO, a proprietary fixed-dose multi-layer delayed-release tablet for the relief of the signs and symptoms of OA, RA, and ankylosing spondylitis (AS). The company also provides RAYOS/LODOTRA, a proprietary delayed-release formulation of low-dose prednisone for the treatment of moderate to severe active RA in adults when accompanied by morning stiffness, as well as for the treatment of polymyalgia rheumatica, psoriatic arthritis, AS, asthma, chronic obstructive pulmonary disease, and various other conditions. Horizon Pharma plc was founded in 2005 and is headquartered in Dublin, Ireland.

Publicly traded companies mentioned herein: AstraZeneca PLC (AZN LN), Horizon Pharma PLC (HZNP), Hyperion Therapeutics Inc (HPTX), Nuvo Research Inc (NRI CN)

Highlights

The presenter is long shares of Horizon Pharma (HZNP), combining a beat and raise story with an accretive deal story. He is expecting 3 – 4 immediately accretive acquisitions in the coming year, and also believes company guidance is overly conservative. The presenter is particularly bullish on Vimovo and Pennsaid as well as the acquisition of Hyperion Therapeutics. In addition, he expects additional deals funded by equity offerings and inversion benefits, with optionality on Actimmune. He describes HZNP as a “classic early specialty pharma that will do deals” with high margins due to very little internal R&D, and targets over $40 share prices in 2016 as a “base case.”

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