Cowen starts coverage of Bellus Health with "outperform", says co is undervalued

BELLUS Health

30/09/2019 14:04

** Cowen starts covering drug developer Bellus Health
 BLU.O  with "outperform" rating
    ** BLU shares are undervalued due to the lack of awareness
about the company, the "blockbuster promise" of its target
chronic cough market and the competitive profile of its
experimental drug BLU-5937, says Cowen analyst Ritu Baral
    ** The chronic cough drug, which is in its mid-stage trial,
to bring in sales of $833 mln in the United States and $294 mln
in the EU in 2029 - Baral
    ** Even if four major treatments are eventually approved,
and gefapixant, a rival drug from Merck & Co  MRK.N , retains
first mover advantage, BLU-5937 could achieve a peak U.S. market
share of 15% in 2027 - Baral 
    ** Up to Friday's close, U.S.-listed shares of BLU had more
than doubled this year

 (Reporting by Tamara Mathias in Bengaluru)
 ((Tamara.Mathias@thomsonreuters.com; within U.S. +1 646 223
8780, outside U.S. +91 806749 1208;))