Actimmune and Friedreich's Ataxia Could Help Horizon Pharma (HZNP) Post Upside, Mizuho Says; PT to $34

Horizon Pharma (NASDAQ: HZNP) reported 3Q:15 revenue of $226.5M vs. consensus of $193.2M. Adjusted EPS of $0.70 also beat the consensus number of $0.41. The beat was driven by strong product demand (volumes) across all of the company's brands, coupled with lower than expected SG&A expense and improved gross margins.

Management raised FY:15 revenue guidance from $660-680M and EBITDA of $265-280M to $750M-$760M in revenues and EBITDA of $350M- $360M. Management introduced 2016 guidance of $950-975M in sales and adjusted EBITDA of $460-475M.

Longer-term the company expects its 2020 revenue to exceed $2.0B, and to have its orphan business unit comprise approximately 60% of these revenues ($1.2B).

Management also guided to primary care sales levels of $0.8-1.0B by 2020, highlighting the durability of this business and its expectations of continued prescription growth.

Mizuho analyst, Irina Koffler, reiterated her BUY rating and raised her PT to $34 from $32. She views company's FA program as "highly risky and assign only a 30% probability of success" to it. She has 0 in her model for this product which management estimated could add an incremental $300-500M

For an analyst ratings summary and ratings history on Horizon Pharma click here. For more ratings news on Horizon Pharma click here.

Shares of Horizon Pharma closed at $22.29 yesterday.

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