Mizuho report today - Settlement Not Precluded by Supreme Court Ruling,Catalyst Rich 6-12 Months - Pt 1
Rating Buy - Price Target $10.00
Avanir Pharmaceuticals, Inc.
We see numerous 6-12 month positive catalysts that could result in AVNR
moving from a ~$600M market cap to a $1-2B valuation and achievement of
our $10 price target; 1) settlement of Nuedexta generic litigation, 2) Phase II MS
pain data, 3) final EU approval of Nuedexta for PBA and a partnership, 4) Phase
II Alzheimer's agitation data. Importantly, we do not believe that last week's
Supreme Court ruling on generic settlements precludes AVNR from entering
a typical agreement without reverse payments that would allow generic entry
between 2016 and 2026.
Sentiment: Strong Buy