HZNP - Horizon Therapeutics Q1 miss irrelevant deal still likely to close - analyst

2023-05-03 12:11:48 ET

• Horizon Therapeutics ( NASDAQ: HZNP ) ticked down 0.7% following a Q1 miss on revenue and EPS, though the results miss is "irrelevant" given that the sale to Amgen is still likely to close, according to a UBS analyst.
• "We continue to view the standalone valuation in the $65-70 range, but expect the deal to close in ~June timeframe," UBS analyst Ashwani Verma, who has a neutral rating on HZNP, wrote in a note earlier Wednesday.
• Tepezza Q1 sales were $405 million, "significantly" below UBS/consensus estimates of $520m/$503m. The miss may be related to sales execution due to deal with Amgen ( NASDAQ: AMGN ) or management's Tepezza turnaround "is not materializing as planned," Verma wrote.
• Investors are now awaiting a May 24 Irish court hearing for Horizon's ( HZNP ) planned $28 billion sale to Amgen ( AMGN ) as well as Federal Trade Commission approval for the deal. Horizon ( HZNP ) and Amgen ( AMGN ) in late January confirmed they received a second request from the FTC.
• Amgen ( AMGN ) agreed to acquire Horizon Therapeutics for $116.50 a share in cash in December, valuing the Ireland-based biotech at nearly $27.8 billion.

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