Needham Maintains Buy on Cempra Inc Following 3Q:15 Update
In a research report issued yesterday, Needham analyst Alan Carr reiterated a Buy rating on shares of Cempra Inc (NASDAQ:CEMP), with a price target of $48, following the company’s third-quarter results and update on its clinical progress. Cempra shares are currently trading at $16.10, up $0.34 or 2.16 percent.
Carr wrote, “The company announced results from its second Phase 3 trial of IV/ oral antibiotic solithromycin in CABP earlier this week. Solithromycin met FDA noninferiority endpoints and one of two EMA non-inferiority endpoints. Mgmt expects to initiate a rolling submission of an NDA in 4Q15 and plans to complete submission of the NDA and MAA in 1H16. We expect approval in both territories, with the assumption that European regulators will be flexible. Based on available safety and efficacy data, we continue to expect commercial success, particularly if partnered in the retail setting (>$2B peak sales).”
“Cempra ended 3Q15 with $182 million in cash, down from $202.4 million in 2Q15. We believe this is sufficient into 2017,” the analyst added.
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 23.5% and a 55.6% success rate. Carr has a -25.4% average return when recommending CEMP, and is ranked #32 out of 3801 analysts.
Out of the 9 analysts polled by TipRanks, 8 rate Cempra stock a Buy, while 1 rates the stock a Hold. With a return potential of 160%, the stock’s consensus target price stands at $41.56.