Roth Capital’s healthcare analyst Debjit Chattopadhyay weighed in today with his views on Cempra Inc (NASDAQ:CEMP), following the news that Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH)’s IGNITE2 phase 3 study did not meet its primary endpoint. Cempra shares reacted to the news, dropping 6.27% to $33.81 as of 12:12PM EDT.
Chattopadhyay wrote, “While TTPH and CEMP are not competitors, IGNITE2 failure could negatively impact investor sentiment. Recall, Cempra’s Solitaire-Oral study, which met its primary endpoint, was the higher risk study in our view, and we remain buyers heading into Solitaire-IV readout during 4Q15.”
“Solithromycin’s robust immunomodulatory, anti-inflammatory, bactericidal properties coupled with its broad pathogen coverage, safety (both GI and CV), and higher barriers to acquired resistance makes it a broadly applicable antibiotic in the community and hospital setting, in our view,” the analyst continued.
Chattopadhyay reiterated a Buy rating on Cempra shares, with a price target of $56, which represents a potential upside of 64% from where the stock is currently trading.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Debjit Chattopadhyay has a total average return of 24.4% and a 60.7% success rate. Chattopadhyay has a -7.2% average return when recommending CEMP, and is ranked #21 out of 3752 analysts.
All the 7 analysts polled by TipRanks rate Cempra stock a Buy. With a return potential of 28%, the stock’s consensus target price stands at $43.57.