Reduces Px Target to $13. Says something about the potential value of the antibiotic IV market being potentially reduced in litigation with Hospiria and CBST...No idea of what that ltigation is frankly.
After looking into the Wedbush downgrade in much more detail, I have come to the conclusion that it is misplaced and factually irrelevant to DRTX. This is not an antibiotic that presents generic risk in any respect. It is a paradigm shifting antibiotic that is administered once per week on an outpatient basis freeing up much needed hospital bed spaces, and allowing the patients to move about freely while they're treated, (not to mention avoiding additional virsuses by having to stay hospitalized).
No longs...The DRTX story is well intact, and we should have a stock that should go much higher in the months ahead. I hope that longs were not shaken out of the stock today by this poorly thought out and written
change of opinion. IMHO of course...
dalbavancin has nothing to do with daptomycin(cubicin). they are totally diferent antibiotics. patents are diferent. about the valuation of durata anybody is free to say whatever they want. i can say that millions of patients will be treated at home instead of in the hospitals, long term acute hospitals (LTAC) nursing homes etc. at this time many patients have infections that require treatment with two intravenous antibiotics for example Meropenem and Dapromycin. Because they need to many daily infusions they CANNOT be sent home with home health care, so they need to go to an institution. the treatment there will be more expensive and the patients will be at risk of getting infected with other very resistent nosocomial microbes like acinetobacter MDR klebsiellae and c. difficile diarrhea-colitis(many of these nosocomial infections potentially deadly). once dalbavancin will be available, all these patients will be able to go home only on Meropenem and once a week dalbavancin. billions of dollars will be saved from the hospitalizations and avoidance of nosocomial infections by medicare, medicaid and private insurances.
this is my opinion and unfortunately for my practice, i will see much less patients in the hospitals after dalbavancin becomes available. many patients will be discharged home earlier and the outpatients infusion centers will probably switch from daptomycin to dalbavancin. all my patients will chose to have one infusion per week rather than drive daily to an infusion center for the daptomycin dose and all of us would probably do the same...maybe the hedge fund guys would like to just do more driving in their BMW's...just being sarcastic.
please do not buy or sell DRTX after reading my post. think for your self if the valuation is right and do your own DD. ty!
a red herring if ever I smelt one.
Feb 2012; Hospira, Inc. advised of the filing of an Abbreviated New Drug Application (ANDA) for a generic version of CUBICIN® (daptomycin for injection). CBST countered by a patent infringement suit forcing a 30-month stay of approval imposed by the FDA on Hospira's ANDA. How this related to DRTX is anyone's guess.
That has been out there for a long time. ML and CS both factored that into there price objectives. This is no more than bringing the stock down after a run-up. It was old ammo used by a Co that never covered DRTX to begin with...probably doing on behalf of a hedge fund with a large short interest.