Deutsche lowers Endo target to $10, keeps Buy rating. Deutsche Bank analyst Gregg Gilbert says that while it is difficult to predict when sentiment on Endo International could improve, the potential exists for greater visibility on some key overhangs over the next year or so. The stock is down 20% year-to-date as U.S. generic market pressures, Vasostrict risk, potential legal liabilities and high leverage continue to weigh on the stock, Gilbert tells investors in a research note. The analyst lowered his price target for Endo to $10 from $12 but keeps a Buy rating on the name. He believes it will be important to see continued stabilization for the generics business and new generic approvals for the stock to work.
Friday, June 1, 2018
CytomX started at buy by SunTrust
CytomX Therapeutics initiated with a Buy at SunTrust. SunTrust analyst Peter Lawson initiated CytomX Therapeutics with a Buy rating and $38 price target. In a research note to investors, Lawson said he is “encouraged” by the biopharma validation of CytomX’s platform, while the company retains ownership of a major part of its pipeline, and believes ASCO and 2H data validates the CX-072 platform for safety and efficacy. Additionally, Lawson contends that 2H data for CX-2009 will validate the company’s strategy of targeting “undruggable” antigens, unlocking two components of CytomX’s valuation. Further, he believes three readouts in 2018 — updated CX-027 data at ASCO, initial Phase 1/2 data from CX-2009 in the second half of the year, and follow-on Phase 1/2 data from CX-072 in the second half — could be positive for the company.
Valeant target upped by Deutsche Bank
Deutsche still likes Valeant risk/reward, ups price target to $25. Deutsche Bank analyst Gregg Gilbert raised his price target for Valeant Pharmaceuticals to $25 from $23 after giving the company some additional credit for protecting the Xifaxan franchise. The analyst pushed out his generic cliff assumption to 2027 from 2026, which he notes still represents a potential “settlement” scenario with generic competition ahead of patent expiry. It is important to note there could be “significant upside to the theoretical valuation” if Xifaxan grows faster than anticipated, generic competition is delayed beyond 2027, and/or if Valeant is able to protect the franchise with new formulations and indications, Gilbert tells investors in a research note. He continues to like the risk/reward for the stock and keeps a Buy rating on the shares.
Merit Medical selloff overdone: Canaccord
Merit Medical selloff after CFO departure overdone, says Canaccord. Canaccord analyst Jason Mills said the selloff in Merit Medical due to the departure of its CFO is overdone. The analyst said the departure was a surprise to the company as well as Wall Street, leading him to believe its was a personal decision as opposed to something untoward about the company’s financials. Mills reiterated his Buy rating and $60 price target on Merit Medical shares.
Pfizer gets nod for cancer med biosimilar in Europe
Pfizer announced the Committee for Medicinal Products for Human Use of the European Medicines Agency has adopted a positive opinion, recommending marketing authorization for TRAZIMERA, a potential biosimilar to Herceptin, for the treatment of HER2 overexpressing breast cancer and HER2 overexpressing metastatic gastric or gastroesophageal junction adenocarcinoma.
PTC gets expanded Duchenne med label in Europe
PTC Therapeutics announced that the Committee for Medicinal Products for Human Use, or CHMP, of the European Medicines Agency, or EMA, has recommended approval of expanding the indication of Translarna to include ambulatory children aged two to five years with nonsense mutation Duchenne muscular dystrophy, or nmDMD. This broadens the use beyond the current indication which is for ambulatory patients who are over five years of age. This recommendation is based on the CHMP’s review of PTC’s Study 030 trial results which the CHMP concluded demonstrates a positive benefit-risk ratio in this population. In addition to the label expansion, the CHMP has also recommended the renewal of the current marketing authorization of Translarna. PTC’s focus on early patient identification and market readiness have been intensified in anticipation of the CHMP recommendation and the launch of Translarna for patients as young as 2 years of age is planned to start immediately at the time of EC ratification.
Jazz remains ‘top idea’: RBC
RBC analyst Randall Stanicky reiterated an Outperform rating and $194 price target on Jazz Pharmaceuticals after hosting a dinner with Chairman and CEO Bruce Cozadd. In a research note to investors, Stanicky said he left the dinner more confident in targeted business development with a view that a deal is likely in 2018. Overall, the analyst said Jazz remains a top pick and sees “lots” of room to run for the stock.
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