UCB: UBS initiates with 'buy' - Cimzia underestimated
(CercleFinance.com) - This morning UBS initiated its coverage of the Belgian pharmaceutical group UCB with a buy rating and a 12-month target price of 80 euros.
This suggests upside potential of 14.3%, with the drug Cimzia seeming to be largely underestimated.
According to analysts, "the market fails to understand the unique competitive positioning of UCB's key product, Cimzia, which treats auto-immune diseases, such as rheumatoid arthritis," the broker's report laments. Cimzia represents about 30% of UCB's revenues, and the market expects that its sales will "plateau," due to competition from new drugs, the so-called JAK inhibitors, and biosimilars which will copy the "old" treatments Humira and Enbrel.
On the contrary, UBS expects Cimzia sales to increase by 6.3% p.a. According to analysts, the latter is positioned on niches: for example, this drug is the most affordable therapeutic option for elderly patients who are covered by the American Medicare health program, UBS says. Not to mention the incentives for doctors to prescribe Cimzia.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
This suggests upside potential of 14.3%, with the drug Cimzia seeming to be largely underestimated.
According to analysts, "the market fails to understand the unique competitive positioning of UCB's key product, Cimzia, which treats auto-immune diseases, such as rheumatoid arthritis," the broker's report laments. Cimzia represents about 30% of UCB's revenues, and the market expects that its sales will "plateau," due to competition from new drugs, the so-called JAK inhibitors, and biosimilars which will copy the "old" treatments Humira and Enbrel.
On the contrary, UBS expects Cimzia sales to increase by 6.3% p.a. According to analysts, the latter is positioned on niches: for example, this drug is the most affordable therapeutic option for elderly patients who are covered by the American Medicare health program, UBS says. Not to mention the incentives for doctors to prescribe Cimzia.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.