UroGen Pharma falls as Jefferies downgrades on commercial underperformance

UroGen Pharma

08/02/2023 13:54

** U.S.-listed shares of UroGen Pharma Ltd  URGN.O  fall
2.8% to $9.30 in premarket trading 
    ** Brokerage Jefferies downgrades the Israel-based biotech
co to "hold" from "buy" on commercial underperformance and cuts
PT to $10 from $35
    ** Jefferies increases stock's discount rate to 14% from 11%
    ** Also reduces sales projections of co's cancer drug,
Jelmyto, and experimental urinary bladder cancer treatment,
Vesigel, by ~30% because of slower uptake
    ** Marginally increases 2023-2025 cost of goods sold (COGS)
to 11% from 10% and selling, general and administrative expenses
(SG&A) to 5% in 2025 on account of the Vesigel launch 
    ** 4 of 6 brokerages covering the stock rate it "buy" or
higher, and 2 recommend "hold"; median PT is $23 - Refinitiv
data 
    ** URGN stock feel 6.7% in 2022
 (Reporting by Pratik Jain in Bengaluru)
 ((Pratik.Jain@thomsonreuters.com;))