Nektar Therapeutics: Movantik’s Approval Represents The Best Possible Outcome, Says Roth Capital


In a research report issued today, Roth Capital analyst Debjit Chattopadhyay maintained a Buy rating on Nektar Therapeutics (NASDAQ:NKTR) with a price target of $21,¬†on the back of the recent FDA approval of the¬†company’s Movantik for the Treatment of Opioid-induced Constipation.

Chattopadhyay observed, “Movantik’s first-pass approval with modest post-marketing CV study requirements represents, in our opinion, the best possible outcome. The CV study will analyze data from healthcare claims databases for CV events in patients treated with Movantik vs. untreated cohorts. Movantik is the first oral once-daily PAMORA for chronic pain patients with OIC; commercialization will begin during 1H15 after the DEA de-scheduling process is complete.”

The analyst added, “So far it has been two out of two for Nektar, with a positive phase 3 from BAX-855, and a first-pass approval for Movantik. BAX-855 BLA filing is expected during 4Q14; we believe it has a 85% probability of first-pass approval. BAX-855 and Movantik together could represent a $200+M royalty stream for NKTR starting in 2016. Our $21 price target is based on a risk adjusted NPV analysis of NKTR’s pipeline. Factors that may impede shares of NKTR from achieving our price target include phase 3 study failures and poor commercial uptake for Movantik and BAX-855.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Debjit Chattopadhyay has a total average return of 1.9% and a 42.9% success rate. Chattopadhyay has a -2.3% average return when recommending NKTR, and is ranked #1774 out of 3284 analysts.

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