Roth Capital Maintains Buy On PTC Therapeutics, $58 PT


In a research report issued today, Roth Capital analyst Debjit Chattopadhyay maintained a Buy rating on PTC Therapeutics (NASDAQ:PTCT) with a price target of $58.00.

Chattopadhyay said, “Regulatory and clinical developments in the DMD sector will be closely watched during 2015. With Translarna phase 3 readout (estimated during October 2015), a lot of attention will be devoted to a deeper understanding of the possible trajectories of disease progression in DMD patients, in our view. We highlight a recently published manuscript, which corroborates the natural history data from Translarna‚Äôs phase 2b, and makes us incrementally more confident on the likely positive readout from the ongoing phase 3. The six minute walk test (6MWT) as the current gold standard: 6MWT provides a good assessment of functional mobility, endurance, and lower limb muscle strength. Recall that PTCT has been the trailblazer in validating this as the primary endpoint for DMD. Some of the key observations from the company sponsored phase 2b study are now used as baseline screening criteria for all DMD-related disease modifying therapy studies. These include: (1) disease progression accelerates with age after the age of seven, and is highly correlated to baseline walking ability, (2) and long-term use of corticosteroids has a positive impact on walking ability . A recently published long-term observational study (PLOS ONE, October 2014, 9: 10) corroborates key observations: Patients were followed for at least three years and 96 patients were available for assessment. Overall there was a progressive deterioration that became sharper with each year. The distance walked decreases rapidly according to age and the baseline walking ability (above or below 350m, p <0.001). Boys with a baseline 6MWT <350m and above the age of seven had the worst outcomes, losing ~200m of walking ability over 36 months (Exhibit 1).”

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 -13.6% and a 27.3% success rate. Chattopadhyay has a 9.7% average return when recommending PTCT, and is ranked #3285 out of 3335 analysts.

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