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Needham Maintains Buy On Cempra Inc Following 4Q14 Results; Remains Positive On Solithromycin Outlook


In a research report released today, Needham analyst Alan Carr maintained a Buy rating on Cempra (NASDAQ:CEMP) with a $42 price target, based on expectations for successful development and commercialization of solithromycin.

Carr observed, “Cempra hosted a conference call last night to provide a quarterly corporate update. Mgmt reiterated plans to discuss timing of results from the ongoing Phase 3 IV/oral solithromycin trial in Community Acquired Bacterial Pneumonia (CABP; SOLITAIRE-IV) in Apr 2015 on the 1Q15 call. As a reminder, positive results from the Phase 3 SOLITAIRE-Oral trial were announced in Jan 2015. Additional data from this latter trial are likely at the ATS, ECCMID, and IDSA mtgs. Mgmt also announced a new strategy for Taksta development, per advice from a Dec 2014 mtg w/the FDA. A 600-800pt Phase 3 trial in ABSSSI will be conducted in conjunction with a ~100pt Phase 3 trial in bone/joint infections, the primary indication.”

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 43.1% and a 75.0% success rate. Carr has a 11.9% average return when recommending CEMP, and is ranked #6 out of 3483 analysts.