Antares Pharma, Inc.

ATRS Details

Antares Pharma, Inc. (NASDAQ: ATRS) is a pharmaceutical business that specialises in speciality drugs. Its primary goal is to develop, and market self-administered parenteral pharmaceutical goods and technology. OTREXUP, Elestrin, Gelnique, Makena, and other items are among the company's offerings.

Why should Investors Sell?

• Acquisition Update: Halozyme Therapeutics, Inc. has entered into a definitive agreement to acquire Antares Pharma, Inc. for approximately USD 960 million. At the closing ATRS market cap stood USD 949.19 million. This implies stock price of ATRS has almost climbed near the deal value. Further, how synergy will pan out post acquisition is uncertain at this juncture.
• Decrease in Profitability: The net income of the company was USD 46.29 million in FY21 compared to USD 56.20 million in FY20, due to increase in selling, general and administrative expenses. Also, the EPS of the company has come down to USD 0.27 per share in FY21 from USD 0.34 per share in FY20.

Stock Recommendation:

The recent acquisition announcement has sent ATRS stock price near the deal value. Future synergies of the combined entity are uncertain at this juncture. Also, the valuation assigned to ATRS stocks in the acquisition deal looks relatively premium over other industry peers. Hence, we recommend a “Sell” rating at the closing price of USD 5.58 (as of April 13, 2022).

ATRS’s Technical Price Chart (as of April 13, 2022). Source: REFINITIV, Analysis by Kalkine Group

*The reference data in this report has been partly sourced from REFINITIV.