J.P. Morgan Comments On Baxter Presentations At AAAAI

In a report published by J.P. Morgan, Baxter Intl BAX presented HyQ at AAAAI. J.P. Morgan said that Baxter has licensed hyaluronidase from Halozyme for use in SubQ IG. The company's Phase III, open label study (n=89 at 15 centers in U.S. and Canada) completed follow up in December 2010 and should be presented later this year. We expect HyQ to be filed by mid-year, paving the way for a potential launch in 2H12. “Baxter shares trade at 12.3x our NTM EPS estimate, a slight discount to the MedTech group average of 12.7x. Our December 2011 price target of $58 is based on 12.6x our 2012 EPS estimate. We view this valuation as appropriate, given the balance of an improving outlook for Baxter's IVIG business and solid long-term potential against what remains a below trend near-term growth outlook for the company overall. However, with limited upside potential to 2011 earnings and better opportunities elsewhere in the group, we maintain our Neutral rating on BAX shares.” Baxter Intl closed yesterday at $52.60.