DCPH - Astrazeneca/Alexion merger could drive more deals: Piper Sandler

Commenting on the proposed merger between Alexion (ALXN) and AstraZeneca (AZN), Piper Sandler highlights the ‘durability’ of large biotech businesses, ‘with Astra pointing to double-digit EPS accretion in years 1-3’ from the deal.“If the market doesn’t recognize it – each and every time – someone else does”, the analysts led by Christopher J Raymond notes, as they single out BioMarin Pharmaceutical (BMRN), Ultragenyx Pharmaceutical (RARE), Acceleron Pharma (XLRN), and Deciphera Pharmaceuticals (DCPH) as compelling within a large entity.Notably, all companies serve the niche segment of rare therapeutics, and some might make more sense, as suggested by their valuations.Ultragenyx and Acceleron, two commercial-stage, rare-disease specialists, have already gained +236.6% and +144.3%, respectively, in the year so far. Comparatively, BioMarin and Deciphera look to be outliers losing -4.8% and -13.6%, respectively.BioMarin is worthy of particular attention. A cursory look at 2014 – 2019 financials indicates the company had more than a twofold rise in revenue with

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Astrazeneca/Alexion merger could drive more deals: Piper Sandler