Epirus Biopharmaceuticals Inc (NASDAQ:EPRS) languished around the $1.00 mark for much of 2013 and the first half of 2014, until they completed their merger with Zalicus in the middle of July 2014, which included a 10:1 stock split. The results of the merger and stock split sent shares vaulting to $11.48, though they’d eventually fall under $4.00 again. On January 7 however, it jumped more than 33% following the news that the FDA had unanimously recommended approval of another biosimilar drug for sale, Sandoz’s EP2006, a biosimilar of the cancer-fighting drug Filgastrim, marketed by Amgen, Inc. (NASDAQ:AMGN) as Neupogen. The landmark ruling opened a clear path for the approval of Epirus’ own biosimilar drugs, assuming proper study results, which in the case of BOW015, they have shown.
Despite that, Epirus Biopharmaceuticals Inc (NASDAQ:EPRS) has again fallen back under $5.00, making it an attractive moderate-risk, high-reward play. The most recent analyst to comment on the stock was Leerink Swann, which initiated coverage back in October with an ‘Outperform’ rating and $12.00 price target. Given Pfizer Inc. (NYSE:PFE)’s recent purchase for $15 billion of another biosimilar maker, Hospira, Inc. (NYSE:HSP), it’s possible Epirus also becomes a takeover target, especially given its current light trading levels which have it valued at a market cap of just $113.19 million. Needless to say, any such move would likely be a coup for Epirus shareholders.