The Globe and Mail reports in its Thursday, April 20, edition that RBC Dominion Securities analyst Gregory Renza downgraded Bellus Health to "sector perform" from "outperform." The Globe's David Leeder writes that Mr. Renza slashed his share target by $6.25 to $14.75 (all figures U.S.). Analysts on average target the shares at $15.56. Mr. Renza says British giant GSK's $2-billion deal to acquire Bellus Health shows the value of its camlipixant drug, calling it "a best-in-class profile in the P2X3 space and attractive chronic cough market opportunity." He says he lowered his recommendation because he expects the acquisition to happen without significant obstacles. Mr. Renza says in a note: "We see Bellus Health's camlipixant as a good strategic fit for GSK's infrastructure and portfolio focus and see low FTC risk as the deal is expected to close in 3Q23 or earlier. We believe camlipixant will fit into GSK's portfolio where 22-per-cent revenue is from the respiratory franchise and leverage their existing infrastructure in PCP and respiratory to harness an opportunity in refractory chronic cough. ... We continue to watch for regulatory updates on gefapixant refiling which per MRK is still scheduled for 1H2023."
© 2023 Canjex Publishing Ltd. All rights reserved.