Morgan Stanley analyst David Lewis double upgraded Baxter to Overweight from Underweight, stating that the company has the most flexible balance sheet in traditional large cap devices and he believes the company should focus on growth oriented deployment of its resources for multiple transactions, not a transformational deal that would bring significant execution risk and could express a lack of confidence in underlying business recovery. He also believes the stock’s current valuation largely reflects the company’s 3-4% weighted average market growth rate but not the acceleration by 2020 that he believes could drive Baxter’s growth rate back up. Lewis raised his price target on Baxter shares to $77 from $66.
Wednesday, January 2, 2019
Arcturus Therapeutics to develop ARCT-810 for OTCD
Arcturus Therapeutics announced the nomination of its first development candidate, ARCT-810, to treat ornithine transcarbamylase deficiency, or OTCD. OTCD is the most common urea cycle disorder. Urea cycle disorders are a group of inherited metabolic disorders that make it difficult for afflicted patients to remove toxic waste products, as proteins are digested. ARCT-810 is based on Arcturus’s propriety lipid library which utilizes the company’s Lunar delivery platform to safely and effectively deliver OTC messenger RNA to liver cells.
Morgan Stanley cuts Globus to Equal Weight, sees consensus as too aggressive
Morgan Stanley analyst Jonathan Demchick downgraded Globus Medical (GMED) to Equal Weight from Overweight, contending that consensus expectations have become too aggressive and need to be reset. The analyst argues that pent-up demand may have elevated 2018 robotic sales and that Medtronic’s (MDT) Mazor X Stealth approval and bundling efforts may pressure Globus sales in 2019. Demchick lowered his price target on Globus shares to $49 from $64.
BioCryst announces first patient dosed in Phase 1 galidesivir trial
BioCryst announced the dosing of the first subject in a randomized, placebo-controlled phase 1 clinical trial to evaluate intravenous galidesivir in healthy volunteers. The main goals of this trial are to evaluate the safety, tolerability and pharmacokinetics of escalating doses of galidesivir in healthy subjects. Up to four single-dose cohorts will be evaluated with a total of up to 32 volunteers participating. The galidesivir development program is substantially funded with federal funds from the National Institute of Allergy and Infectious Diseases, or NIAID, part of the National Institutes of Health, and by the Biomedical Advanced Research and Development Authority.
OrthoPediatrics price target raised to $37 at BTIG
BTIG analyst Ryan Zimmerman raised his price target on OrthoPediatrics to $37 and kept his Buy rating, calling the stock his “2019 Top Pick in Musculoskeletal” sector. The analyst points to a “combination of durable demographic and epidemiological trends, stable procedural volumes within hospitals, and a robust economy spurring elective procedure demand” supporting the sector’s continued growth. Zimmerman is also positive on the company’s “strengthened balance sheet from a recent equity raise, a large total addressable market, limited competition, and a growing portfolio of niche products.”
Insmed initiated at Canaccord
Insmed initiated with a Buy at Canaccord. Canaccord analyst Dewey Steadman initiated Insmed with a Buy rating as he views the launch of Arikayce positively given the severe unmet need in nontuberculous mycobacterial lung disease and the potential for the drug to become core to the NTM treatment paradigm over time. He believes Insmend is well positioned as a specialty play and thinks the company has been unfairly caught up in broader infectious disease market meltdown as several antibiotic companies have disappointed investors. Steadman has a $20 price target on Insmed shares.
Henry Schein downgraded to Neutral at Baird
Baird analyst Jeff Johnson downgraded Henry Schein to Neutral from Outperform. The analyst is more cautious on the combination of the dental sector’s secular overhangs, softer Q4 patient volume checks, and accelerating equipment pricing pressures. He trimmed his estimates across the sector and believes lower EBITDA will drive a lower sum-of-the-parts valuation. Johnson lowered his price target to $85 from $95 on Henry Schein shares.
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