Horizon Therapeutics Q1 miss irrelevant, deal still likely to close - analyst
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Horizon Therapeutics (NASDAQ:HZNP) ticked down 0.7% following a Q1 miss on revenue and EPS, though the results miss is "irrelevant" given that the sale to Amgen is still likely to close, according to a UBS analyst.
"We continue to view the standalone valuation in the $65-70 range, but expect the deal to close in ~June timeframe," UBS analyst Ashwani Verma, who has a neutral rating on HZNP, wrote in a note earlier Wednesday.
Tepezza Q1 sales were $405 million, "significantly" below UBS/consensus estimates of $520m/$503m. The miss may be related to sales execution due to deal with Amgen (NASDAQ:AMGN) or management's Tepezza turnaround "is not materializing as planned," Verma wrote.
Investors are now awaiting a May 24 Irish court hearing for Horizon's (HZNP) planned $28 billion sale to Amgen (AMGN) as well as Federal Trade Commission approval for the deal. Horizon (HZNP) and Amgen (AMGN) in late January confirmed they received a second request from the FTC.
Amgen (AMGN) agreed to acquire Horizon Therapeutics for $116.50 a share in cash in December, valuing the Ireland-based biotech at nearly $27.8 billion.
More on Horizon/Amgen 
Amgen: Questioning The Horizon Therapeutics Acquisition
Horizon Therapeutics: Attractive 7.16% Upside To Amgen Deal
Amgen's acquisition of Horizon Therapeutics on track to close in 1H - report