Kepler's promotion pushes Recordati, analysts say good investment in Isturisa

(Il Sole 24 Ore Radiocor) - Recordati's shares gained 2.44% to €47.92 after Kepler Cheuvreux raised its recommendation from "hold" to "buy", with the price target rising from €55.5 to €57.5 per share. The pharmaceutical group's shares are trading at a level considered 'interesting and attractive to investors'. Ahead of the 2025 accounts, due on 17 February, analysts expect results and guidance to be in line with market expectations, net of the additional EUR 40 million in investments related to Isturisa, a drug in the anti-corticosteroid category and indicated for the treatment of endogenous Cushing's syndrome in adults.

According to Kepler's experts, in particular, 'this additional expense is particularly appropriate in light of the recent rejection by the Fda (the US Food and Drug Administration) of a potential competitor drug. After infrastructure and currency adjustments, we confirm our estimates for fiscal 2025 and reduce earnings per share for fiscal 2026 by 5% to reflect the higher costs associated with the investment in Isturisa'. For 2026, the estimate is that costs associated with the commercial push for Isturisa in the US will be around 40 million, costs that 'should be reabsorbed in 2027'. Kepler points out, however, that, 'out of prudence, the company's forecast of a sales peak of over EUR 1.2 billion for Isturisa has not been incorporated into the estimates. At this stage we assume around EUR 950 million by 2033'.