SVB Leerink initiated coverage of Amryt Pharma PLC (NASDAQ:AMYT) with an “outperform” rating and price target of $22.
Analyst Mani Foroohar, M.D., writes that Amryt’s model of acquiring niche commercial or near-commercial orphan assets and leveraging scale to improve economics and move progressively up the asset quality/total addressable market curve “puts the company on a path of unglamorous (but financially attractive) growth carved out by larger orphan players.”
With the recent acquisition of Chiasma and its oral acromegaly drug, Mycapssa, “shares discount a level of complexity and investor uncertainty that belies what we see as a straightforward growth acceleration story across multiple orphan markets, leaving them meaningfully undervalued,” he added.
