Berenberg sees strong haemophilia market driving Swedish Orphan Bio stock

Published 09/07/2024, 11:02
Berenberg sees strong haemophilia market driving Swedish Orphan Bio stock

On Tuesday, Berenberg maintained a Buy rating on Swedish Orphan Bio (SOBI:SS) (OTC: SWTUY) stock, with a steady price target of SEK320.00. The firm's confidence in the stock is largely due to the company's strong position in the haemophilia market, which is a significant contributor to its net present value (NPV). Almost half of Sobi's NPV is attributed to its haemophilia franchise.

The biopharmaceutical company's revenue projections for 2024-2027 in the haemophilia sector are estimated to be 1-8% higher than the consensus. This optimistic forecast is fueled by the company's innovative long-acting factor VIII (FVIII) therapy, Altuviiio/Altuvioct. This therapy has recently secured approval in the European Union, marking a critical milestone for Sobi.

The firm's positive outlook is further supported by ongoing discussions with expert physicians. These discussions reinforce the belief that Altuviiio/Altuvioct is well-positioned to become the FVIII therapy of choice. With this potential, Sobi is expected to capture a significant portion of the haemophilia A market, which is valued at approximately $10 billion.

The haemophilia A market is a competitive and specialized field, and Sobi's success hinges on the adoption and preference for Altuviiio/Altuvioct among healthcare providers and patients. The EU approval is a key step in ensuring the therapy's availability and potential market penetration.

Sobi's stock rating and price target reflect the firm's anticipation of the company's growth within the haemophilia market. The company's strategic moves and product development efforts seem to be aligning with the firm's expectations for a strong performance in the coming years.

In other recent news, Swedish Orphan Bio received an Outperform rating from RBC Capital Markets, emphasizing the company's diversified portfolio of growth drivers. The firm anticipates these drivers will support a 15% compound annual growth rate in EBITDA over the midterm, approximately double the sector average.

RBC Capital remains confident in Swedish Orphan Bio's prospects, despite expectations of a subdued second-quarter performance, which is anticipated to show limited sales growth and a decline in earnings per share.

The upcoming second-quarter results, to be announced soon, are expected to be temporarily impacted by one-time phasing effects and the aftermath of the CTI deal. However, RBC Capital clarified that these factors should not affect the company's full-year or mid-term outlook. The anticipated dip in the quarterly results does not undermine Swedish Orphan Bio's overall growth trajectory, according to the firm's analysis.

These recent developments highlight the importance of looking beyond immediate quarterly results, as temporary factors do not alter the long-term financial expectations for Swedish Orphan Bio, as suggested by RBC Capital. The firm's analysis and ratings provide valuable insights for investors and stakeholders navigating the company's future growth potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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