Mackie Research has initiated coverage of Medicure (TSX-V:MPH) with a “buy” recommendation and 12-month target price of $2.80. The stock was quoted at $2.10 on Friday morning.
“The FDA approval of Aggrastat HDB in October 2013 and its launch should be the driver of sales and earnings,” writes analyst Andre Uddin. He expects revenue from Aggrastat HDB to steadily, reaching peak sales of $21-million in 2020.
Mr. Uddin said Jonathan Goodman is a strategic advisor to Medicure. “His business development and strategic experience will be invaluable to Medicure as they continue to seek opportunistic product acquisitions such as the Apicore purchase option.”
In July 2014, Medicure obtained a 5% equity stake in Apicore, a private maker of active pharmaceutical ingredients, with an option to acquire the company within three years.
“Acquiring this company would diversify Medicure’s revenue base and potentially help the company acquire new hospital-based products,” Mr. Uddin added.