Gentium Upgraded to Strong Buy - Analyst Blog

On Jan 2, 2014, Zacks Investment Research upgraded Gentium (GENT) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

Shares of Gentium, an Italy-based biopharma company, have been on an uptrend, gaining 2.5%, since the announcement of its takeover by Jazz Pharmaceuticals (JAZZ). Jazz Pharma will acquire Gentium for $57.00 per share in cash or $1 billion.

The offer price of $57.00 per share represents a 2.4% premium to Gentium’s closing price of $55.65 per share on Dec 19, 2013. The transaction is expected to close in the first quarter of 2014.

Gentium’s lead product, Defitelio is approved in the EU (Oct 2013) for the treatment of severe hepatic veno-occlusive disease (VOD) in patients undergoing hematopoietic stem cell transplantation. The company expects to start obtaining pricing approvals in EU countries in the first quarter of 2014, extending up to 2015.

A regulatory application for Defitelio is expected to be submitted in the first half of 2014 in the U.S. The FDA has granted Fast Track Designation to Defitelio for the VOD indication.

Defitelio enjoys Orphan Drug status in both the U.S. and EU for the treatment and prevention of VOD. In the EU, Defitelio was granted an Orphan Drug designation for the prevention of graft versus host disease as well. Defitelio is also being evaluated for prevention of VOD (phase III).

Other Stocks to Consider

Other players in the pharma industry, which look attractive at current levels, include Jazz Pharma, Lannett Company, Inc. (LCI) and Forest Laboratories Inc. (FRX). All these stocks carry the same Zacks Rank as Gentium.

FOREST LABS A (FRX): Free Stock Analysis Report

GENTIUM SPA-ADR (GENT): Free Stock Analysis Report

JAZZ PHARMACEUT (JAZZ): Free Stock Analysis Report

LANNETT INC (LCI): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research