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BancBoston Robertson Stephens Upgrades Immunex Corp to Buy Rating

Strategic Insights

— 1 min read

BancBoston Robertson Stephens senior biotechnology analyst, Michael G. King, Jr., has upgraded Immunex Corp. to a Buy rating from a Long-Term Attractive, citing the strength of the company's "early rheumatoid arthritis (RA)" study data. The study showed that Enbrel, Immunex's blockbuster arthritis drug, was able to slow the progression of RA and induce clinical benefits, moving Enbrel up to first-line therapy. King expects the new data to increase Enbrel revenue forecasts for fiscal 1999-2003 and believes the stock has the potential to break the billion-dollar barrier during fiscal 2001.

Key Takeaways:

  • BancBoston Robertson Stephens upgraded Immunex Corp to a Buy rating from a Long-Term Attractive, citing the strength of the company's "early rheumatoid arthritis (RA)" study data.
  • The study showed that Enbrel, Immunex's blockbuster arthritis drug, was able to slow the progression of RA and induce clinical benefits, moving Enbrel up to first-line therapy.
  • King expects the new data to increase Enbrel revenue forecasts for fiscal 1999-2003, with the stock potentially breaking the billion-dollar barrier during fiscal 2001.
  • The RA study data raise the market potential for Enbrel from 500,000 late-stage U.S. RA patients to the entire population of 2.5 million RA patients.
  • BancBoston Robertson Stephens sets a new price target of $160 for Immunex based on the strength of the data.
  • King emphasizes that valuation remains an issue with the stock, but foresee sales forecasts increasing going forward.

Statistics:

  • Immunex's Enbrel revenue forecasts for fiscal 1999-2003 are expected to increase.
  • The potential market for Enbrel has been raised from 500,000 late-stage U.S. RA patients to 2.5 million RA patients.
  • BancBoston Robertson Stephens sets a new price target of $160 for Immunex Corp.
  • The stock has the potential to break the billion-dollar barrier during fiscal 2001.

Sources:

  • BancBoston Robertson Stephens
  • The National Association of Securities Dealers (CRD number 41271)
  • Immunex Corp.
  • PRNewswire

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