Hikma Pharmaceuticals PLC (LON:HIK) advanced on Thursday following an upgrade to ‘overweight’ from ‘underweight’ by JPMorgan Cazenove.
Analysts at the investment bank also raised their target price for the FTSE 100-listed stock to 2,400p from 1,850p reflecting the “significantly improved growth outlook” after the generics pharma company this week won patent litigation over a drug to prevent heart disease.
READ: Hikma wins litigation over heart disease prevention drug
Hikma is developing a generic version of Vascepa, commercialised by Dublin-based Amarin Corporation PLC (NASDAQ:AMRN), which had claimed Hikma was infringing patents protecting it from generic versions.
But earlier this week the US Court for the District of Nevada ruled in favour of Hikma.
JP Morgan's analysts said Hikma's candidate could get approval in the second half of this year and has the potential to reach US$2.5bn of peak sales.
If Amarin appeals the court’s decision, however, the drug could be launched after mid-2021, they added.
The analysts also said Hikma will be little impacted by the coronavirus crisis and that there is potential for higher US generics demand during the epidemic.
Hilma shares rose 5% to 2,152p on Thursday at noon.