Mizuho Securities Raises Price Target to $36 Following Horizon Pharma's (HZNP) Announced Crealta Deal

Mizuho Securities reiterated a Buy rating on Horizon Pharma (NASDAQ: HZNP), and raised the price target to $36.00 (from $34.00), following the Crealta announcement. Horizon plans to acquire Crealta, a private company selling Krystexxa, a third line, Orphan biologic for the treatment of chronic, refractory gout. The deal represents a ~7x sales multiple in the $70-80M range in the first 12 months after deal close, but brings in a highly durable biologic with IP to 2027. Mizuho expects it to close in 1Q16.

Analyst Irina Koffler commented, "We maintain our BUY rating and raise PT to $36 from $34 following the Crealta announcement. We think this small deal should drive ~8% accretion in 2016. Separately, we see no slowing of Horizon's PME business and think there could be upside to our 2016 estimates. Horizon will be levered to ~2x adj. 2016 EBITDA, so deal flow could continue, in our view."

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 $18.99 yesterday.

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