MLV Cuts RedHill Price Target To Reflect A Delay In Rizaport Approval

In a research report issued today, MLV analyst Vernon Bernardino reiterated a Buy rating on RedHill Biopharma (NASDAQ:RDHL) but slightly reduced his price target to $25 (from $27), which implies an upside of 209% from current levels.

Bernardino noted, “We believe RedHill Biopharma is achieving pipeline and operational progress as expected, and thus, view the stock’s 45% pullback from the highs in September unwarranted and unrelated to any issue in the company’s fundamentals. The company recently submitted its Marketing Authorization Application (MAA) seeking Rizaport (RHB-103) approval in the EU, initiated its third Ph 3 program (RHB-102 for gastroenteritis), and gained Qualified Infectious Disease Product (QIDP) designation for RHB-105.

The analyst concluded, “RedHill remains on track to gain approval and generate meaningful revenues from other products in the 2015-2017 timeframe. We look for multiple milestones, such as assignment of a new PDUFA decision date for Rizaport, initiation of Ph 3 with RHB-104 in Crohn’s in the EU in 4Q14, and topline data from the ongoing Ph 3 with RHB-105 in Helicobacter pylori in 1H15, as catalysts for stock appreciation.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Vernon Bernardino has a total average return of 17.1% and a 11.1% success rate. Bernardino is ranked #775 out of 3377 analysts.

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