Cantor Raises Tetraphase Price Target As Success Of IGNITE1 Brings An NDA One Step Closer


In a research report sent to investors today this morning, Cantor analyst Daniel Brims reiterated a Buy rating on Tetraphase Pharmaceuticals (NASDAQ:TTPH) and raised his price target to $40 (from $26), which represents a slight upside potential from current levels.

Brims observed, “Management has stated they are exploring partnering options for the EU, and, while we will have to wait for an full analysis of the data to be presented at an upcoming scientific meeting (either ICAAC in Sep 2015 or IDWeek in Oct 2015), we believe the top-line data makes eravacycline more attractive during negotiations and makes TTPH as a whole a more attractive potential take-out target.”

The analyst added, “We expect TTPH to file their NDA with the FDA by YE:15 and we believe under the GAIN act, eravacycline will receive priority review to give potential approval in mid-2016. We believe the positive IGNITE1 study substantially derisks the IGNITE2 study as well as potential regulatory review and as a result we are lowering our discount rate to 10% from 13%, increasing our price target.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Daniel Brims has a total average return of 9.8% and a 50.0% success rate. Brims has a 112.4% average return when recommending TTPH, and is ranked #1220 out of 3417 analysts.

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