Analyst Slashes PT of uniQure NV (QURE)

By Carrie Williams

uniqure-analyst-reduces-ptIn a report released today, analyst Gbola Amusa from Chardan Capital reduced their price target to $12 from $20 while still maintaining a Buy rating on the biopharmaceutical company Uniqure NV (NASDAQ: QURE). The drastically lowered PT is still an upside of 54.24% from the last close price of $7.78, the stock is currently trading above its 50-day SMA of $7.54.

Gbola Amusa’s change in PT was in reaction to the latest announcement done by uniQure today morning. The Netherlands-based company had announced the completion of a company-wide strategic review aimed at simplifying the company structure by refocusing its pipeline, consolidating its manufacturing and enhancing overall execution to drive shareholder value. Consequently, the company de-emphasized their Sanfilippo B and Parkinson’s disease programs while prioritizing programs in hemophilia B, Huntington’s disease and other programs associated with collaboration with Bristol-Myers Squib (BMS) in cardiovascular disease.

In addition, QURE also announced their plan to restructure the R&D organization in the Netherlands and to consolidate manufacturing in the United States (Lexington, MA). The company also plans to reduce its staff by 50-60 positions (20-25%) by end-2017 resulting in €5-6 mm in annualized cost savings. This would pump up the current cash resources of QURE, making it adequate to fund operations into 2019, versus 2018 previously.

Amusa explained that the de-emphasis impacted the earlier price target which was modeled on the sales of the two products.

“We previously modeled $222 mm in 2025E sales for AMT-110 (Sanfilippo B), on a 45% probability of the product getting to market. With a reduction of the probability from 45% to 0%, our QURE PT declines $6.43 on the program. We previously modeled $68 mm in 2025E sales for AMT-090 (Parkinson’s disease), on a <5% probability of the product getting to market. Modeling 0% probability results in a $1.52 reduction to our price target”

Amusa believes that the high-dose data for AMT-060 in Hemophilia B, planned to be presented by QURE on 3 December 2016 at American Society of Hematology (ASH), would precede further clarity on catalysts in 1Q17 since its preliminary results were encouraging.

QURE currently has an overall Strong Buy consensus rating based on the most recent analyst recommendation, as provided by TipRanks. The analysts’ average target price is $23.67 a share, representing an upside of 204.24% from the current levels.