Cantor analyst Chiara Russo is liking the odds for Paratek Pharmaceuticals Inc (NASDAQ:PRTK) after Cempra Inc (NASDAQ:CEMP) received a Complete Response Letter (CRL) for its pipeline and PRTK’s omadacycline competitor in the indication of community-acquired bacterial pneumonia (CABP), solithromycin.

The agency is requesting that CEMP respond to safety concerns by generating a “huge” 9,000 patient comparative safety trial in CABP as well as address manufacturing weaknesses for solithromycin.

One biotech firm’s delay is another’s room to become champion, and as far as Russo is concerned, “In our view, with the receipt of the CRL, this places PRTK squarely in a potential first-to-market position in CABP.”

Therefore, the analyst reiterates an Overweight rating on shares of CEMP with a $28 price target, which implies a close to 84% upside from where the stock is currently trading.

Ultimately, “The writing was on the wall, in our opinion, and this morning Cempra Inc. (CEMP, $6.10, NC) received a CRL for their NDA of solithromycin in community acquired pneumonia. Due to the potential of liver toxicity, the FDA recommended a 9,000 patient study to further characterize safety. Additionally, deficiencies were noted, though not specifically in the current Wockhardt manufacturing facility. Though CEMP has noted that they will meet with the FDA as soon as possible to discuss these recommendations, we see these as serious set backs to their CABP program and putting PRTK as the front-runner,” Russo contends.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, two-star analyst Chiara Russo is ranked #2,905 out of 4,291 analysts. Russo has a 47% success rate and loses 0.2% in her annual returns. However, when recommending PRTK, Russo yields 9.9% in average profits on the stock.

TipRanks analytics exhibit PRTK as a Strong Buy. Out of 5 analysts polled by TipRanks in the last 3 months, all 5 are bullish on Paratek stock. With a return potential of 124%, the stock’s consensus target price stands at $34.20. ¬†

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