UCB remains Jefferies' biotech top pick, hikes Zealand Pharma to 'buy'

Poxel SA

11/01/2022 11:21

** Jefferies is "cautiously positive" on the European
biotechnology sector, saying that what is necessary for
investors to get involved is an increase in M&A and sustained
positive clinical and regulatory news flow
    ** UCB  UCB.BR  remains the broker's top pick for 2022, as
it reflects a "compelling growth profile and catalyst path"
    ** Jefferies' other top ideas are Almirall  ALM.MC , Idorsia
 IDIA.S  - both rated "buy" - and Zealand Pharma  ZELA.CO  which
it upgrades to "buy" from "hold", seeing a catalyst-rich H2 2022
for the Danish company
    ** Near-term funding overhang has been removed and the
reaction to Zealand Pharma's 2021 product sales guidance cut
appears "overdone", suggesting a compelling entry point, the
broker says
    ** It notes Zealand Pharma's late-stage proprietary pipeline
programmes - such as short bowel syndrome treatment,
glepaglutide, now in Phase III - are in the focus
    ** Moreover, early stage pipeline is largely overlooked, it
adds
    ** Jefferies also highlights "potentially compelling"
risk/reward from upcoming binary events for PureTech Health
 PRTC.L , Poxel  POXEL.PA , and Vaccitech  VACC.O  (all "buy")
    ** The broker remains hesitant on Genmab  GMAB.CO ,
Galapagos  GLPG.AS , Ipsen  IPN.PA , and Lundbeck  LUN.CO  (all
"hold")

 (Reporting by Marta Frackowiak)
 ((marta.frackowiak@thomsonreuters.com))