RBC Capital initiated coverage on Esperion Therapeutics (NASDAQ: ESPR) with an Outperform rating and a price target of $150, suggesting upside of 50%. Analyst Michael J. Yee called the stock a "high conviction, smid-cap idea" and noted ETC-1002's efficacy, excellent side effect profile, ease of oral administration, and blockbuster commercial potential. Yee thinks there is a high likelihood of a big pharma partnership or takeout
Yee explained, "We're bullish and buyers of ESPR for 5 reasons:
(1) we think the drug ETC-1002 is fairly de-risked with multiple Phase II studies and clear efficacy (i.e., the drug works....);
(2) safety appears very good after over 650 pts treated (and 160+ at key doses);
(3) we think it's undervalued at only $2B market cap yet has $2 "5B peak sales potential " standard peer multiples of 3 "5x suggest $6 "20B market cap potential over next few years " or 3 "10x theoretical upside if drug is approved and is on track towards multi-billion dollar status (or takeout valuation);"
The analyst continued, "(4) upcoming catalysts to buy the stock here: new Phase II data in Q2:15 that should be positive, and H2:15 blessing from FDA and green-light announcement to move into Phase III program; and
(5) we think there's already been good pharma interest here and Phase III go-ahead sets up a potential partnership or it could lead to a takeout down the road."
For an analyst ratings summary and ratings history on Esperion Therapeutics click here. For more ratings news on Esperion Therapeutics click here.
Shares of Esperion Therapeutics closed at $103.13 yesterday.
Latest TTPH presentation ar Needham was a winner. Yahoo Profile to go to their home page, easy to find in the investor drop down.
CEMP and TTPH are your two derisked Multi Drug Resistant antibiotic leaders. CEMP will be huge,
TTPH might be more of something with catalytic potential over a shorter term.
All of the quinolones and other mycins are on the list of drugs that can cause the Long QT - the rest beat - that goes on for a long time, maybe forever. I remember Prabha said in her presentation that Solithromycin has not shown QT heart effects.
BMO Capital analyst Jim Birchenough reiterated an Outperform rating and $26 price target on Halozyme Therapeutics (NASDAQ: HALO) after the American Association of Cancer Research meeting where, over the weekend, Halozyme PEGPH20 investigator, Dr. Sunil Hingorani discussed the targeting of hyaluronan (HA) in pancreatic cancer, noting that PEGPH20 combined with chemotherapy results in permanent favorable architectural changes after stoppage of PEGPH20.
Birchenough commented, "We maintain our Outperform rating on HALO following this weekend's AACR presentation and on prospects for PEGPH20 in pancreatic CA and other cancers with high HA expression. With impressive response rate and PFS data already established, we believe that enhanced biologic understanding of PEGPH20 action further increases confidence in prospects for success in pancreatic Ca. Durable benefit following early PEGPH20 termination and lasting effects on tumor vasculature could inform new dosing strategies to optimize therapeutic index across tumor types and realize the broad potential of PEGPH20 as a platform to enhance chemotherapy efficacy. We continue to see PEGPH20 as an undervalued asset, in the context of a HALO valuation that can be supported by partnered PH20 programs like HERCEPTIN SC and MABTHERA SC."
what happened to the toll-like receptors, man?
And another way to look at it, while I am not suggesting that solithromycin will take over azithromycin, I am not. But if you were to look at azithromycin prescriptions in United States, as you know there is a little over 50 million prescriptions last year for azithromycin, which would indicate that that is somewhere between $7 billion and $10 billion a year in branded dollars and I give that range, because you could think of a range in terms of what it would be priced at. So if Zithromax were branded today it would probably be in the neighborhood of $7 billion to $10 billion
David Moore, Cempra CFO, last quarter's conference call
A good thing to keep in mind
From Fly on the wall:
Cempra price target raised to $50 from $33 at SunTrust
SunTrust increased its price target on Cempra after altering its revenue model from a joint venture revenue split for the company's solithromycin drug to a sole U.S. commercialization effort by the company.
The firm thinks it is quite possible for Cempra to market solithromycin on a stand alone basis in the U.S. It keeps a Buy rating on the shares.