Credit Suisse analyst Tiago Fauth downgraded Iveric bio (ISEE) to Neutral from Outperform with a price target of $40, up from $34, after the company announced it had entered into a definitive agreement to be acquired by Astellas Pharma (ALPMY) for $40 per share, which represents an equity value of $5.9B. The deal has strong strategic rationale as Astellas identified "Blindness & Regeneration" as one of its primary focus areas, in which Iveric will provide it with a strong foundation in ophthalmology, the firm notes. Furthermore, Credit Suisse thinks the price is appropriate and reflects a high probability outcome for the August 19, 2023 PDUFA action date, as well as a competitive commercial landscape. While it would expect multiple parties to be interested in Iveric bio, the potential for a substantial overbid at this moment seems low, the firm adds.
Published first on TheFly
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