H.C. Wainwright has upheld a positive outlook on ANI Pharmaceuticals (NASDAQ: NASDAQ:ANIP), maintaining a Buy rating and a $94.00 price target for the company's stock.
The affirmation follows ANI Pharmaceuticals' recent completion of the acquisition of Alimera (NASDAQ:ALIM) Sciences, which is expected to enhance its rare disease business with a new global commercial ophthalmology franchise.
The acquisition, which was finalized yesterday, is set to be nearly immediately accretive to ANI Pharmaceuticals. It leverages the company's robust commercial infrastructure and is anticipated to complement its existing Cortrophin Gel in ophthalmology.
Additionally, the deal provides ANI Pharmaceuticals with a global footprint that could broaden its business development opportunities.
Alimera Sciences contributes two long-duration steroid intravitreal implants, Iluvien and Yutiq, designed to treat diabetic macular edema and chronic non-infections uveitis affecting the posterior segment, respectively.
Pro forma sales for 2024 are estimated to be around $105 million. ANI also forecasts an adjusted EBITDA accretion of $35-38 million by 2025, which includes approximately $10 million in annualized cost synergies.
The Rare Disease segment of ANI Pharmaceuticals, combined with the projected $185-195 million Cortrophin sales, is expected to reach pro forma 2024 sales of $290-300 million, which would account for 45% of the company's pro forma 2024 revenue.
This marks a significant shift from two years ago when the Rare Disease segment comprised only 14% of revenue.
ANI Pharmaceuticals has also indicated that the momentum for Cortrophin has continued since the second quarter earnings call, with record new patient starts in August. This has bolstered confidence that the 2024 guidance midpoint may be conservative.
In other recent news, ANI Pharmaceuticals reported a strong second quarter in 2024, with an 18% increase in revenues to $138 million compared to the same period in 2023.
This surge in revenue was driven by the success of the company's rare disease asset, the purified Cortrophin gel, which saw a 102% increase in revenue, and a solid performance in the generics business, which grew by 17%.
Despite reporting a net loss of $2.7 million for the quarter, ANI Pharmaceuticals has raised its full-year net revenue guidance to $540 million to $560 million.
In terms of product launches, ANI Pharmaceuticals recently introduced a new generic medication, Promethazine Hydrochloride and Dextromethorphan Hydrobromide Oral Solution, for treating symptoms associated with cough and cold.
This marks the 14th new product launch for the company this year, contributing to the growth of their Generics business.
However, Truist Securities downgraded ANI Pharmaceuticals' stock rating from Buy to Hold, citing concerns regarding the delayed closure of ANI's acquisition of Alimera and potential issues discovered during due diligence.
The firm also adjusted the price target downward to $60 from the previous $80. Despite these challenges, ANI Pharmaceuticals remains optimistic about future growth, particularly with the pending acquisition of Alimera Sciences, expected to enhance their rare disease and ophthalmology portfolio.
InvestingPro Insights
ANI Pharmaceuticals (NASDAQ:ANIP) is drawing attention with its recent acquisition of Alimera Sciences and the positive impact on its financial outlook. According to InvestingPro insights, ANI Pharmaceuticals has a market capitalization of $1.1 billion and is trading at a P/E ratio of 34.32. This valuation is particularly intriguing when considering the company's revenue growth over the last twelve months, which stands at a robust 34.27%. The growth trajectory is further underscored by a quarterly revenue increase of 18.44% as of Q2 2024.
InvestingPro Tips highlight the expected net income growth this year for ANI Pharmaceuticals, which aligns with the company's own projections post-acquisition. Additionally, ANI is trading at a low P/E ratio relative to near-term earnings growth, suggesting that the stock may be undervalued given its future earnings potential. This is further supported by the company's strong free cash flow yield, as implied by its valuation metrics. For investors seeking more detailed analysis, there are over 8 additional InvestingPro Tips available for ANI Pharmaceuticals at https://www.investing.com/pro/ANIP.
With the company's strategic expansion into ophthalmology and its forecasted revenue growth, these insights provide investors with a clearer picture of ANI Pharmaceuticals' financial health and future prospects.
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