Boiron: Oddo downgrades and cuts target
(CercleFinance.com) - The company confirmed on Friday night that it had received a first negative opinion from the Transparency Commission of the HAS.
It means that homeopathic drugs, the company's core business, may in future no longer be reimbursed by health insurance.
Boiron has 10 days to transmit (accompanied with its arguments) comments or request an audition at the HAS, which will give a final verdict.
Following this information, Oddo has downgraded the share from Neutral to Reduce and has cut its corresponding target price to 35 euros.
The broker is not optimistic regarding the opinion of the HAS (its opinion is that at least the rate will drop to 15% and will probably fall to 0%, although rather in 1 or 2 years' time).
To set the order of magnitude, say that losing 15% will amount to losing nearly 23 million euros in sales and probably 15 million euros in terms of the group's underlying OP, i.e. almost 15% of its underlying OP, Oddo estimates.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
It means that homeopathic drugs, the company's core business, may in future no longer be reimbursed by health insurance.
Boiron has 10 days to transmit (accompanied with its arguments) comments or request an audition at the HAS, which will give a final verdict.
Following this information, Oddo has downgraded the share from Neutral to Reduce and has cut its corresponding target price to 35 euros.
The broker is not optimistic regarding the opinion of the HAS (its opinion is that at least the rate will drop to 15% and will probably fall to 0%, although rather in 1 or 2 years' time).
To set the order of magnitude, say that losing 15% will amount to losing nearly 23 million euros in sales and probably 15 million euros in terms of the group's underlying OP, i.e. almost 15% of its underlying OP, Oddo estimates.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.