Berenberg Updates Price Target, Estimates for UCB on Recent Pipeline Deals
Berenberg revised its price target and earnings forecasts for UCB (UCB.BR) to account for the biopharmaceutical company's recent acquisitions. "UCB recently closed three pipeline transactions: Candid Therapeutics, Neurona Therapeutics and Antengene. These deals bolster the immunology and neuroscience pipeline, adding two novel assets which will enter P2/P3 later this year. At the current share price, UCB offers a free option on the pipeline. This is unwarranted, in our view, given the historical returns track record and breadth of pipeline. We add the recent deals to our model and raise our price target to EUR305 [from EUR290]," analysts said Thursday, noting the acquisitions are anticipated to ramp up research and development spending starting in the second half. Ahead of UCB's half-year results publication on July 30, the research firm said it expects Bimzelx's rising volume to compensate for reduced net price due to expanded rebates in the hidradenitis suppurativa indication. As such, analysts forecast 1.5 billion euros in first-half sales, with a peak of 8.5 billion euros. Against this backdrop, Berenberg raised its revenue forecasts for full-year 2026 and 2027 by 0.8%.
Berenberg revised its price target and earnings forecasts for UCB (UCB.BR) to account for the biopharmaceutical company's recent acquisitions. "UCB recently closed three pipeline transactions: Candid Therapeutics, Neurona Therapeutics and Antengene.
These deals bolster the immunology and neuroscience pipeline, adding two novel assets which will enter P2/P3 later this year.
At the current share price, UCB offers a free option on the pipeline.
This is unwarranted, in our view, given the historical returns track record and breadth of pipeline.
We add the recent deals to our model and raise our price target to EUR305 [from EUR290]," analysts said Thursday, noting the acquisitions are anticipated to ramp up research and development spending starting in the second half.
Ahead of UCB's half-year results publication on July 30, the research firm said it expects Bimzelx's rising volume to compensate for reduced net price due to expanded rebates in the hidradenitis suppurativa indication.
As such, analysts forecast 1.5 billion euros in first-half sales, with a peak of 8.5 billion euros.
Against this backdrop, Berenberg raised its revenue forecasts for full-year 2026 and 2027 by 0.8%.