Argus Initiates Bioverativ With Hold

In February, Bioverativ Inc BIVV spun off from Biogen Inc BIIB with two marketed products for the treatment of hemophilia.

While expressing optimism regarding Bioverativ being able to establish itself as a “profitable, independent biotechnology company” that is focused on rare blood disorders, Argus’ Stephen Biggar said in a report that the company could face significant and sustained competition in the hemophilia market.

Biggar initiated coverage of Bioverativ with a Hold rating, estimating the fair value of $51.

Lack Of Near-Term Upside

The two products that Bioverativ was spun off with are generating positive cash flow from operations. The global hemophilia market company is estimated at $10 billion. Moreover, the company was funded with $325 million to meet its long-term growth needs.

The analyst pointed out, however, that the hemophilia market is highly competitive, with both commercially and in late-stage clinical development. On the other hand, Bioverativ's entire pipeline is in pre-clinical development.

Biggar further mentioned that Bioverativ's favorable prospects already seemed factored into the current valuation and the company’s pipeline would not provide any meaningful catalysts in the near term.

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