February 13, 2019 / 5:41 PM / 8 months ago

BUZZ-Bausch Health: Mizuho expects FDA nod for plaque psoriasis lotion

** Mizuho analyst Irina Koffler expects the FDA to approve Bausch Health’s plaque psoriasis treatment Duobrii this Friday

** Upcoming review follows a prior complete response letter and the Nov 2018 approval of Bausch’s Bryhali (halobetasol lotion), both of which “de-risk” approval, Koffler says

** The FDA rejected Duobrii in June last year over questions regarding pharmacokinetic data collected by Bausch, or Valeant Pharmaceuticals as the company was known then

** Koffler expects BHC stock to move 10 pct in either direction depending on the news as the drug is an important growth driver for Bausch’s Ortho Dermatologics segment and critical to stabilizing the struggling business

** Duobrii is part of Bausch’s “Significant Seven,” a suite of seven key products expected to generate over $1 bln in sales in the next five years

** Koffler says additional catalysts for the stock include approval of the Synergy sale by the Bankruptcy Court, also on Friday, and 2019 guidance on the Feb. 20 earnings call

** BHC U.S. shares down 1.7 pct at $24.91 on the day, cutting YTD gains to ~35 pct; Mizuho rates BHC “buy” with a $39 PT, higher than Wall St median PT of $31 (Reporting by Savio D’Souza)

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