Hyperion Therapeutics Receives a Hold from Brean Capital

By George MacDonald

Brean Capital analyst Difei Yang reiterated a Hold rating on Hyperion Therapeutics (NASDAQ: HPTX) yesterday. The company’s shares opened today at $45.90, close to its 52-week high of $46.96.

Yang noted, “Horizon Pharma plc (HZNP , Buy) is to acquire Hyperion Therapeutics, Inc. in an all-cash offer for $46/share. We believe the offer is fair given recent transaction prices of similar deals in the space as well as the decision to discontinue development of glycerol phenylbutyrate for the indication of hepatic encephalopathy. Our EV/Sales approach gave a valuation of $48/share. When we take out the HE indication from the DCF calculation and revise the associated R&D expenses, then apply the tax rate with Hyperion in Horizon’s portfolio, we obtain a valuation of $44/share. The current offering price by Horizon Pharma of $46 is the mid-point of our two approaches. As such, we believe the offering price is reasonable and fair. On this news announcement, we downgrade the HPTX shares to HOLD”

Currently, the analyst consensus on Hyperion Therapeutics is Hold and the average price target is $44, representing a -4.1% downside. In a report released yesterday, Roth Capital also downgraded the stock to Hold with a $46 price target.

The company has a one year high of $46.96 and a one year low of $20.23. Currently, Hyperion Therapeutics has an average volume of 397.4k.

According to TipRanks.com, Yang is a 4-star analyst with an average return of 15.3% and a 64.7% success rate. Yang covers the Healthcare sector, focusing on stocks such as Protalix Biotherapeutics, Spectrum Pharmaceuticals, and Cardiome Pharma Corp.

Hyperion Therapeutics Inc is a commercial biopharmaceutical company engaged in the development and commercialization of novel therapeutics to treat disorders in the areas of orphan diseases and hepatology.