Roth Capital Reaffirms Buy On Durata As It Begins Shipping Dalvcance To Its Distributors
In reaction to Durata Therapeutics’s (DRTX) announcement that it has began shipping Dalvance to its distributors, Roth Capital analyst Ed Arce reaffirmed a Buy rating with a $28 price target. Dalvance is the only intravenous antibiotic available for acute bacterial skin and skin structure infections that allows patients to stay out of the hospital.
Arce wrote, “We believe Dalvance’s recently established price of $4470 for a full course of treatment (1000 mg followed by 500 mg one week later) represents less than 50% of the current cost of ABSSSI treatment, primarily because half the cost of treatment today is “room-and-board” at the hospital for patients occupying a hospital bed. With Dalvance treatment, many patients will not need to be admitted to the hospital”. The analyst continued, “Sales of Dalvance occurring in 3Q14 will likely be distributor stocking. As such, we believe (as guided by management) that the 4Q14 sales figure will represent the first quarter of true demand-driven sales”.
According to TipRanks.com, which measures analysts and bloggers success rate based on how their calls perform, analyst Ed Arce has a 44.4% average return and a 43% success rate. Arce has a -13.9% average return when recommending DRTX, and is ranked #196 out of 3215 analysts.