CIBC raises Omrix Q3 profit forecast
The bank reiterates its target price of 14% over Friday’s close for the Israeli biotech firm.
Erez Wollberg and Globes’ correspondent 7 Oct 07 13:56
CIBC World Markets has raised its third quarter sales forecast for Omrix Biopharmaceuticals Ltd. (Nasdaq:OMRI) to $12.1 million from $11 million, and doubled its and earnings per share (EPS) forecast to $0.08 from $0.04, thanks to an early launch of Evithrom. However, the bank has lowered its fourth quarter sales forecast for the company by $1 million, and kept its 2008 forecasts unchanged. The bank notes that its forecasts do not include a second drug, VIG, which provides a likely source of upside, possibly as early as the fourth quarter.
CIBC reiterates its “Sector Outperformer” for Omrix with a 12-18 month target price of $43, 14% above Friday’s close of $37.95. CIBC also notes that Omrix has been a strong performer, rising 30% since August, but there are “some interesting developments that keep us positive in the long term.”
CIBC noted that “Evithrom (Thrombin) was launched in September in the US, and that Johnson & Johnson (NYSE:JNJ) is aggressively mobilizing its sales force ahead of a possible approval for ZymoGenetics Inc. (Nasdaq: ZGEN) in January, and that Johnson & Johnson is pricing at a notable premium to King Pharmaceuticals Inc. (NYSE:KG) Thrombin JMI.
“As for VIG, a bid by Omrix to the French government was submitted and a decision is coming later this month. Cangene Inc. (TSX:CNJ; Pink Sheets:CGNOF) is the only other competitor and Omrix’s chances look good… We estimate the contract size at $20 million over 18-24 months.”
CIBC predicts that Omrix will post a net profit of $8.5 million on $51.7 million revenue in 2007 and a net profit of $29.4 million on $86.7 million revenue in 2008.
Published by Globes [online], Israel business news - www.globes.co.il - on October 7, 2007
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