Roth Capital Affirms Buy On Durata Therapeutics Following License Agreement With Angelini
Last week, July 30, Durata Therapeutics (DRTX) announced a commercialization agreement for Dalvance (dalbavancin) with Angelini across much of Southern and Eastern Europe, Russia and Turkey. The deal is potentially worth $80M in milestones to Durata, including a $15M upfront payment, plus undisclosed royalties on sales across the region.
In reaction to the license agreement, Roth Capital analyst Ed Arce affirmed a Buy rating on the stock, with a $28 price target, in a research note issued August 1.
Arce noted, “We view this deal positively and believe it highlights Durata’s continued strong execution”. He continued, “We believe Durata continues to execute well on Dalvance, across multiple fronts, including utilizing its two-month head start on competitor, Orbactiv (oritavancin) from The Medicines Company (MDCO), to solidify its position with key hospital targets. As a reminder, Orbactiv’s PDUFA date is next Wednesday, August 6.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ed Arce has a 33.3% average return and a 37.5% success rate. Arce has a -20.3% average return when recommending DRTX, and is ranked #241 out of 3200 analysts.
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