February 26, 2016 David Bautz, PhD 312-265-9471 Small-Cap Research
[email protected] scr.zacks.com 10 S. Riverside Plaza, Ste 1600, Chicago, IL 60606 Aralez Pharmaceuticals Inc. (ARLZ-NASDAQ) ARLZ: A Strong Management Team and INITIATION Plenty of Capital Makes Aralez a Top On February 5, 2016, Pozen, Inc. and Tribute Specialty Pharmaceutical Pick… Pharmaceuticals Canada, Inc. announced the planned merger between the two company’s was complete, Current Recommendation Buy resulting in the newly formed parent company, Aralez Pharmaceuticals, Inc. Aralez will be headquartered in N/A Prior Recommendation Canada, with additional operations in the U.S. and Ireland. Date of Last Change 02/26/2016 The company will resubmit the New Drug Application Current Price (02/26/16) $5.92 (NDA) for Yosprala to the FDA in the second quarter of 2016, leading to a likely approval in 4Q16. In addition, we Target Price $10.50 anticipate at least one accretive deal transpiring during 2016 to lead to further growth. Aralez has a strong management team with a proven track record in M&A, making the company a top pick in the specialty pharmaceutical sector. SUMMARY DATA 52-Week High $12.44 Risk Level Average 52-Week Low $5.57 Type of Stock Small-Growth One-Year Return (%) -20.43 Industry Med-Drugs Beta 1.65 Average Daily Volume (sh) 381,935 ZACKS ESTIMATES Shares Outstanding (mil) 64 Market Capitalization ($mil) $379 Revenue Short Interest Ratio (days) 9.15 (In millions of $) Institutional Ownership (%) 36 Q1 Q2 Q3 Q4 Year Insider Ownership (%) 15 (Mar) (Jun) (Sep) (Dec) (Dec) 2014 7.5 A 7.4 A 7.5 A 9.9 A 32.4 A Annual Cash Dividend $0.00 2015 4.4 A 5.2 A 5.8 A 6.5 E 21.4 E Dividend Yield (%) 0.00 2016 49.7 E 2017 88.8 E 5-Yr.