Long Position on HZNP @ $25.75 on 4/1/2015 (Momentum)

Horizon Pharma plc (HZNP) engages in identifying, developing, acquiring or in-licensing, and commercializing medicines for the treatment of arthritis, pain, inflammatory, and/or orphan diseases in the United States and internationally.

It offers ACTIMMUNE for reducing the frequency and severity of serious infections associated with chronic granulomatous disease; DUEXIS, a proprietary tablet formulation for the relief of signs and symptoms of rheumatoid arthritis (RA) and osteoarthritis (OA), and to decrease the risk of developing upper gastrointestinal ulcers in patients who are taking ibuprofen for these indications; PENNSAID for the treatment of pain of OA of the knee; and VIMOVO, a proprietary fixed-dose multi-layer delayed-release tablet for the relief of the signs and symptoms of OA, RA, and ankylosing spondylitis (AS).

The company also provides RAYOS/LODOTRA, a proprietary delayed-release formulation of low-dose prednisone for the treatment of moderate to severe active RA in adults when accompanied by morning stiffness, as well as for the treatment of polymyalgia rheumatica, psoriatic arthritis, AS, asthma, chronic obstructive pulmonary disease, and various other conditions. 

Shares have formed a bullish "flag" following the company's decision to acquire Hyperion Therapeutics, Inc. (HPTX) for around $1.1 billion in cash. Horizon Pharma will add two of Hyperion Therapeutics’ products to its portfolio – Ravicti and Buphenyl. Both the products are approved for the treatment of patients suffering from urea cycle disorders (UCDs). In 2014, the products jointly contributed $113.6 million to Hyperion Therapeutics’ revenues. Higher share prices are expected for this stock.

52-Weeks Trading Range: $7.85 - $26.46

Entry Point: $25.75

Stop Loss: $24.46

Target Price: $28.33

Updates

4/10/2015 10:14:18 AM

HZNP reached our target. Closed at $28.50.

Position closed on 4/10/2015 at price of $28.50 with a 10.68% gain in 9 days.

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