Cavendish Reiterates 'Buy' Rating on Shield Therapeutics Following US Product Deal with Viatris
Cavendish has reaffirmed its 'buy' recommendation for Shield Therapeutics PLC (AIM:STX, OTCQB:SHIEF) after the company reached an agreement to take full commercial control of ACCRUFeR in the United States from Viatris. The deal allows Shield to assume responsibility without upfront cash payments but involves a reduced royalty on US net sales over five years. The broker maintains its target price at 23 pence, suggesting potential upside of around 318% based on the current share price of approximately 5.5 pence. Cavendish views this as one of Shield's most significant strategic developments since entering into a US agreement in 2022. The move is expected to improve profit margins despite higher operating costs, with management forecasting immediate value accretion from the transaction.
Topics: M&A activity pharmaceuticals stock ratings