Jefferies analyst Brian Tanquilut has maintained their bullish stance on OPCH stock, giving a Buy rating on April 11.
Brian Tanquilut has given his Buy rating due to a combination of factors that mitigate the potential negative impact of recent developments. Despite the approval of a self-injectable version of VYVGART by Argenx, which could lead to a shift from infusion therapies to self-administration, Tanquilut believes the impact on Option Care Health’s earnings will be minimal. This is because VYVGART represents a small portion of OPCH’s business with thin margins, and even in a worst-case scenario, the revenue impact is estimated to be less than 4%.
Additionally, while IVIG therapies make up about 15% of OPCH’s revenues, Tanquilut notes that the potential shift of patients from IVIG to VYVGART is unlikely to happen swiftly or completely. Physicians tend to be cautious in changing therapies for patients who are responding well to their current treatments. Therefore, the market share shift will likely take years, reducing the immediate financial threat to OPCH. Given these factors, Tanquilut views the market’s reaction as an overestimation of the risk, supporting his Buy rating on the stock.
OPCH’s price has also changed slightly for the past six months – from $29.580 to $31.550, which is a 6.66% increase.