H.C. Wainwright has initiated bullish coverage of four healthcare stocks headed into the end of 2017. Analyst Edward White explained his positive take on the four stocks in a research note on Thursday. Here’s a rundown of what he had to say.
Acceleron Pharma - Buy
White said the future of Acceleron Pharma Inc (NASDAQ: XLRN) lies in its leading drug candidate, Iuspatercept. Acceleron is currently co-developing the drug with Celgene Corporation (NASDAQ: CELG). H.C. Wainwright is projecting peak sales of $2 billion for Iuspatercept, or roughly $400 million for Acceleron.
“We think luspatercept could be brought to the market by late 2019, and it will achieve blockbuster sales by 2026,” White wrote. H.C. Wainwright has a $57 price target for Acceleron stock.
Fate Therapeutics - Buy
White said Fate Therapeutics Inc (NASDAQ: FATE) has a strong pipeline of best-in-class drug candidates to treat cancer patients and other diseases with major unmet needs. According to White, the company’s leading candidate, ProTmune, has the highest probability of success, but that its NK-100 candidate has the highest upside.
“We project revenues of $329M and $68M for ProTmune and NK-100, respectively, in 2026,” White wrote. H.C. Wainwright has a $7 price target for Fate stock.
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Mirati Therapeutics - Buy
White said Mirati Therapeutics, Inc. (NASDAQ: MRTX)’s precision oncology strategy will be a winner for long-term investors. Mirati is developing drugs that target specific mutations that are known to cause cancer. The stock recently jumped following positive data presented at the Chicago Multidisciplinary Symposium in Thoracic Oncology.
“We note Mirati's products are in early development and project revenues of $210M, $175M, and $140M for glesatinib, sitravatinib, and mocetinostat, respectively, in 2026,” White wrote. H.C. Wainwright has a $20 price target for Mirati stock.
TESARO - Buy
White said TESARO Inc (NASDAQ: TSRO) isn't getting enough credit for its U.S. Zejula launch and the rest of its impressive pipeline. He expects 2018 global revenue of $111 million from Varubi and $379 million from Zejula in 2018.
“We believe the stock’s current trading price serves as an attractive entry point for investors given the untapped potential for Zejula in other indications, including the front-line setting for ovarian cancer and Varubi in chemotherapy-induced nausea and vomiting,” White wrote.
H.C. Wainwright has a $158 price target for TESARO.
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Latest Ratings for XLRN
|Oct 2017||H.C. Wainwright||Initiates Coverage On||Buy|
|Sep 2017||RBC Capital||Initiates Coverage On||Sector Perform|
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