Eagle Pharmaceuticals (EGRX): Setup Looks Attractive - RBC

RBC Capital analyst, Randall Stanicky, held calls with Eagle Pharmaceuticals (NASDAQ: EGRX) management following recent share volatility and increased call volume.

The analyst sees a lot of "visible" value in EGRX with pipeline optionality offering upside. The NPV for bendamustine/BENDEKA royalties (~$37) combined with current cash (~$5.00) comes close to matching the current equity value and is highly visible. That leaves little to no implied value for Ryanodex and all of the associated indications as well as the remainder of the pipeline including KANGIO. There are several updates expected near-term with a mid-July BENDEKA J-code meeting, EHS meeting with the FDA on a path forward, and ongoing FDA dialogue around KANGIO.

The analyst thinks the setup looks attractive. No change to Outperform rating or price target of $78.00.

For an analyst ratings summary and ratings history on Eagle Pharmaceuticals click here. For more ratings news on Eagle Pharmaceuticals click here.

Shares of Eagle Pharmaceuticals closed at $43.07 yesterday.

You May Also Be Interested In

• RBC Capital Starts Apotex Health Corp (APTX:CN) at Outperform
• Baird Downgrades Citizens Financial Group (CFG) to Neutral
• Wells Fargo Starts Forbright Inc (FRBT) at Overweight