Roth Capital analysts came out with bullish calls on the Cambridge biotech company Sarepta Therapeutics Inc (NASDAQ:SRPT) and Lexington biotech company Synta Pharmaceuticals Corp. (NASDAQ:SNTA), following recent meetings and events.
Sarepta Therapeutics Inc
Roth Capital’s healthcare analyst Debjit Chattopadhyay reiterated a Buy rating on shares of Sarepta, with a price target of $50, after the FDA notified the company that its Peripheral and Central Nervous System Drugs Advisory Committee will tentatively meet on January 22, 2016 to review the company’s New Drug Application (NDA) for eteplirsen for the treatment of Duchenne muscular dystrophy.
Chattopadhyay wrote, “The PDUFA remains February 26th, 2016, but the delayed committee meeting has handed the bears a new lease: Drisapersen approval in December eliminates the unmet need; two-month head start dramatically alters the commercial outlook; and drisapersen gets an A for effort (conducted a phase 3). In our view, eteplirsen and drisapersen are not substitutes, eteplirsen’s safety profile is far superior, mechanism-of-action has now been validated; and importantly, multiple confirmatory studies are underway (not the case with drisapersen).
The analyst concluded, “Recent pullback offers compelling risk/reward: We expect a positive panel vote followed by conditional approval.”
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 5.9% and a 42.1% success rate. Chattopadhyay has a 47.9% average return when recommending SRPT, and is ranked #642 out of 3779 analysts.
Out of the 10 analysts polled by TipRanks, 9 rate Sarepta stock a Buy, while 1 rate the stock a Hold. With a return potential of 83%, the stock’s consensus target price stands at $50.56.
Synta Pharmaceuticals Corp.
Roth Capital analyst Joseph Pantginis reiterated a Buy rating on shares of Synta Pharmaceuticals, with a $13 price target, following a meeting with SNTA management, which left him more confident that investors are on the verge of intriguing times for Synta and especially ganetespib.
Pantginis noted, “We hosted meetings with management and point to an important upcoming catalyst this quarter, namely the first interim analysis for GALAXY-2 in NSCLC. An intriguing aspect to this event is that it will be based on 60% of events. Recall this study was based on the positive, statistically significant, randomized GALAXY-1 Phase II which prospectively defined the “optimal” population to target.” Furthermore, “Management indicated their desire to maintain U.S. rights and partner with one or more entities ex-U.S.”
“With financing overhang in sight as current cash reserves provide limited runway, we believe a positive outcome from the first GALAXY-2 interim analyses should increase interest and visibility for the company,” the analyst added.
Pantginis concluded, “We believe Synta remains attractive based primarily on the promise of ganetespib in several indications and the partnering potential of the drug.”
According to TipRanks.com, analyst Joseph Pantginis has a total average return of -6.6% and a 32.5% success rate. Pantginis has a -40.8% average return when recommending SNTA, and is ranked #3741 out of 3779 analysts.
As of this writing, the 3 analysts polled by TipRanks rate Synta Pharmaceuticals stock a Buy. With a return potential of 394%, the stock’s consensus target price stands at $9.75.