Portola Pharmaceuticals: Expect Additional Upside From Here

Even after Portola Pharmaceuticals Inc PTLA shares soared nearly 50 percent following news of betrixaban receiving FDA approval (reported on Benzinga Pro), Oppenheimer analyst Jay Olson sees further upside. Olson maintains an Outperform rating on Portola with a $66 price target.

A Closer Look At Olson’s Bullish Theses

• Initially, management had hinted at pricing betrixaban in line with competitors, but now management has noted a pricing premium could be in play. Olson sees management increasing the price from $466 to $599 per patient, which raised his 2024 sales estimate by $300 million.
• The market has become “more accustomed to reimbursement and other challenges that lead to less pronounced early penetration rates which have characterized many recent drug launches," Olson noted. He sees this creating additional upside for Portola shares driven by andexanet. 
• The factor Xa inhibitor market is growing, and Olson expects the US market to continue to see double-digit growth through 2025.

Portola Pharmaceutical was trading up nearly 4 percent, at $58 during Monday’s trading session.

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