JPMorgan sets ANI Pharmaceuticals stock at $85 target

On Wednesday, JPMorgan analyst initiated coverage on ANI Pharmaceuticals (NASDAQ: NASDAQ:ANIP), a specialty pharmaceuticals company, with a positive Overweight rating and an ambitious price target of $85.00. The firm joins a growing consensus of bullish analysts, with targets ranging from $62 to $94, according to InvestingPro data. The firm’s analysis highlighted ANI Pharmaceuticals’ strong portfolio of branded and generic products, which positions the company for potential growth, supported by its impressive 26.2% revenue growth over the last twelve months.

ANI Pharmaceuticals’ lead product, Cortrophin Gel, is expected to experience increased uptake in ophthalmology due to an expanded commercial presence. The company also anticipates growth in other indications, such as acute gouty arthritis. The recent acquisition of Yutiq and Iluvien from Alimera (NASDAQ:ALIM) enhances ANI’s product offering, further supporting the company’s growth trajectory. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 2.72, providing financial flexibility for such strategic acquisitions.

The generics portfolio, accounting for 45% of ANI Pharmaceuticals’ revenues, is considered well-positioned by JPMorgan. This segment is expected to contribute significantly to the company’s top-line (high single-digit) and bottom-line (low double-digit) growth, outpacing that of its specialty pharmaceutical peers. InvestingPro Tips indicate that net income is expected to grow this year, with 5 analysts recently revising their earnings estimates upward.

In addition to the product portfolio’s strong performance, ANI Pharmaceuticals is involved in litigation with CG Oncology over a royalty stream. JPMorgan views this as an attractive virtual call option that is currently underappreciated by the market. This aspect could potentially offer additional upside to ANI Pharmaceuticals’ shares, creating a favorable outlook for the company’s stock according to the firm’s assessment. For deeper insights into ANI Pharmaceuticals’ valuation and growth potential, including exclusive financial health scores and detailed analysis, explore the comprehensive Pro Research Report available on InvestingPro.

In other recent news, ANI Pharmaceuticals reported impressive fourth-quarter earnings, with adjusted earnings per share of $1.63, surpassing the analyst estimate of $1.45. The company’s revenue for the quarter reached $190.6 million, exceeding the consensus estimate of $175.12 million and marking a 44.8% increase year-over-year. The Rare Disease segment was a notable contributor, with revenue more than doubling to $87 million, driven by Cortrophin Gel and newly acquired ophthalmology drugs Iluvien and Yutiq. Following these results, ANI Pharmaceuticals raised its 2025 revenue guidance to between $756 million and $776 million, higher than previous forecasts and analyst consensus.

Leerink Partners responded to these developments by raising their price target for ANI Pharmaceuticals to $82.00, maintaining an Outperform rating. The firm highlighted the potential growth of Cortrophin Gel and the strategic importance of Iluvien and Yutiq. Meanwhile, Truist Securities maintained a Hold rating on ANI Pharmaceuticals, with a price target of $62.00. The firm expressed a cautious stance, emphasizing the importance of the company’s strategic realignment and the resolution of reimbursement challenges for Iluvien and Yutiq.

ANI Pharmaceuticals’ management has shown confidence in their strategic direction, with plans to launch a pre-filled syringe formulation of Cortrophin Gel in the second quarter of 2025. The company is also preparing to present new data from studies related to Iluvien and Yutiq in the same period. These recent developments reflect ANI Pharmaceuticals’ ongoing transition and strategic focus on branded rare disease products.

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