Buy AbbVie, Pfizer, Satsuma and Evolus, Mizuho Securities says

Satsuma Pharmaceuticals

06/02/2020 10:30

** Mizuho Securities analyst Vamil Divan starts coverage of
Pfizer Inc  PFE.N , AbbVie Inc  ABBV.N , Evolus Inc  EOLS.O  and
Satsuma Pharma  STSA.O  with "buy" rating
    ** Says weakness after PFE's Q4 results is opportunity for
investors to buy stock at start of "pivotal year" for co, calls
out heart drug Vyndamax and cancer drug Ibrance as growth
drivers; assigns PT of $42
    ** Divan adds that ABBV's pending acquisition of Allergan
Plc  AGN.N  changes drugmaker's story for the better, as it
brings "additional growth drivers at an attractive price";
assigns PT of $96
    ** As EOLS approaches one-year anniversary of "encouraging"
U.S. launch of its Botox-rival Jeuveau, Divan sees "significant
room for upside" as treatment could gain traction outside the
U.S.; brokerage assigns PT of $20
    ** STSA takes differentiated approach to growing market for
migraine treatment with its drug STS101, which Divan estimates
has 70% probability of success and can bring in sales of ~$300
mln in 2028; brokerage assigns PT of $37
    ** Divan also starts covering Alkermes Plc  ALKS.O , Sage
Therapeutics  SAGE.O  and Neurocrine Biosciences  NBIX.O  with
"neutral" rating
    ** Says remains on sidelines with ALKS and awaits signs of
better execution and co's management of costs in future 
    ** Says Street is underestimating time and investment Sage
will need to launch its depression drug SAGE-217, even if it
ultimately becomes a blockbuster
    ** Notes that while NBIX's lead drug has been clear success,
next wave of innovation is needed to drive up Street estimates 


 (Reporting by Tamara Mathias in Bengaluru)
 ((Tamara.Mathias@thomsonreuters.com; within U.S. +1 646 223
8780, outside U.S. +91 80661822705;))