ANI Pharmaceuticals (ANIP)

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From Wall Street Zen ...

Impressive Q4 Results Propel Ani Pharmaceuticals to Record Growth
By Don Francis, Editor
March 6, 2024 3:05 AM EST


Guggenheim's Vamil Divan raised their price target on Ani Pharmaceuticals (NASDAQ: ANIP) by 10% from $70 to $77 on March 5, 2024. The analyst maintained their Strong Buy rating on the stock.

This price target hike comes in response to Ani Pharmaceuticals' impressive fourth quarter and full-year 2023 earnings report, which was released on February 29, 2024. The company once again achieved record quarterly results, with net revenues from cortrophin gel exceeding Guggenheim's forecast.

Ani Pharmaceuticals reported strong financial performance for the fourth quarter of 2023. The company's earnings per share (EPS) came in at $1.00, surpassing the Zacks Consensus Estimate of $0.80 and representing a 31.6% increase from the previous year's fourth quarter. Revenue for the quarter reached $131.65 million, beating the Zacks Consensus Estimate of $123.02 million and marking a substantial 39.8% growth compared to the same period in 2022. Adjusted EBITDA also showed significant improvement, rising 29.6% to $30.2 million.

For the full fiscal year 2023, Ani Pharmaceuticals delivered impressive results. EPS reached $4.71, a remarkable 246.3% increase from the previous year. Revenue for the year soared to $486.8 million, representing a 53.9% surge, while adjusted EBITDA rose to $133.8 million, a 139.4% jump. The company's management provided a fair and optimistic guidance for fiscal year 2024, anticipating an EPS range of $4.26 to $4.67. They also projected revenue growth of 7% to 11%, amounting to a range of $520 million to $542 million, as well as adjusted EBITDA in the range of $135 million to $145 million.

Nikhil Lalwani, President and CEO of Ani Pharmaceuticals, expressed his satisfaction with the company's performance, stating, "Q4 capped off a record year for Ani, as we delivered record growth in annual net revenue and adjusted EBITDA." Lalwani highlighted the strong performance of the company's lead Rare Disease asset, Cortrophin Gel, which experienced accelerated new patient starts in the fourth quarter. He also emphasized the momentum gained in net revenue, new cases initiated, and expansion into new therapeutic areas.

Looking ahead to 2024, Ani Pharmaceuticals plans to leverage its R&D capabilities, operational excellence, and U.S.-based manufacturing footprint to launch new products and address patient needs. The company expects its Rare Disease business, particularly the Cortrophin Gel franchise, to be the primary driver of growth, with an estimated over 50% year-over-year increase in revenues. Lalwani expressed confidence in the company's ability to drive market share in core therapeutic areas while also exploring new indications and expanding the overall ACTH market.

The analyst consensus among top-rated analysts is overwhelmingly positive, with 100% of them rating ANIP as a Strong Buy or Buy. No analysts recommend holding the stock, and none suggest selling it either. The analysts' consensus forecast for ANIP's upcoming year indicates earnings per share (EPS) of $1.65. If their predictions hold true, ANIP's next yearly EPS will see a substantial 91.8% increase compared to the previous year.

Since ANIP's latest quarterly report on February 29, 2024, the stock price has experienced a 3.4% decline. However, on a year-over-year basis, the stock has seen significant growth, with a 47.1% increase. During this period, ANIP has outperformed the S&P 500, which has risen by 25.4%.

Vamil Divan, the Guggenheim analyst who raised the price target on ANIP, is ranked among the top 5% of Wall Street analysts by WallStreetZen. Divan specializes in the Healthcare sector and has an average return of 16.3% and a win rate of 56.9%.

ANI Pharmaceuticals, Inc. is a biopharmaceutical company focused on developing, manufacturing, and marketing branded and generic prescription pharmaceuticals in the United States and Canada. The company's product portfolio includes controlled substances, oncology products, hormones and steroids, injectables, and other formulations. ANI Pharmaceuticals also provides contract development and manufacturing services for other companies. The company distributes its products through various channels such as retail pharmacy chains, wholesalers, distributors, mail order pharmacies, and group purchasing organizations. ANI Pharmaceuticals, founded in 2001, is headquartered in Baudette, Minnesota.

https://www.wallstreetzen.com/news/impressive-q4-results-propel-ani-pharmaceuticals-to-record-growth