UPDATE: Morgan Stanley Reiterates On Pharmacyclics Following IMS Launch Analysis

In a report published Tuesday, Morgan Stanley analyst Matthew Harrison reiterated an Equal-Weight rating on Pharmacyclics (NASDAQ: PCYC), but removed the $100.00 price target.

In the report, Morgan Stanley noted, “We performed a detailed IMS launch analysis that suggests 2014 nums are too low, but 2015+ are too high given current trends. We see 2014 US Imbruvica sales of ~$375M (+$75M vs guide and +$42M vs cons), but 2015 sales of ~$620M (-$120M vs cons).

"Key deltas vs the Street: (1) The MCL bolus was large compared to incident pts, thus we expect little Y/Y MCL sales growth; (2) R/R CLL continues to launch, but flattening new prescriptions (NRx) point to a peak ~$120M/qtr run-rate outside of incidence/price growth; (3) We model a modest impact of off-label prescribing (16% of 2015 sales).”

Pharmacyclics closed on Friday at $87.62.