Needham Lifts Cempra Price Target As Solithromycin Phase 3 Trial Meets Primary Endpoint
Needham analyst Alan Carr weighed in today on shares of Cempra (NASDAQ:CEMP) maintaining a Buy rating and raising the price target to $42 (from $28), as the company announced positive results from its first of two Phase 3 trials of solithromycin in Community Acquired Bacterial Pneumonia (SOLITAIRE-Oral).
Carr noted, “The trial met the primary endpoint of non-inferiority to comparator moxifloxacin. Safety profile remains strong. We expect detailed results to be presented at the ECCMID mtg in Apr 2015. Mgmt plans to guide for timing of results from the second Phase 3 trial (IV and oral formulations; SOLITAIRE-IV) in Apr 2015.”
The analyst added, “We assume the trial will be completed YE15, with launch YE16. We reiterate BUY and raise price target due to reduced risk associated with the program. Our $42 target is based on 25x our 2020 $3.36 EPS estimate, discounted 15% annually. We believe solithromycin has over $2B in WW peak sales potential given positioning for use in community setting.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Alan Carr has a total average return of 40.8% and a 69.7% success rate. Carr has a -0.8% average return when recommending CEMP, and is ranked #6 out of 3427 analysts.