Roth Capital Reiterates Buy On Nektar Following Positive CHMP Opinion For Moventig


In a research report issued today, Roth Capital analyst Debjit Chattopadhyay reiterated a Buy rating on Nektar Therapeutics (NASDAQ:NKTR) with a $21 price target, following today’s news that the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) has adopted a positive opinion recommending approval of the company’s MOVENTIG® (naloxegol) for the treatment of opioid-induced constipation (OIC) in adult patients who have had an inadequate response to laxatives.

Chattopadhyay wrote, “Movantik’s (Moventig in the EU) first-pass approval with modest post- marketing CV study was, in our opinion, the best possible outcome. Hence, the CHMP’s positive nod for Moventig comes as no surprise. Recall that Movantik is the first oral, once-daily PAMORA for chronic pain patients with OIC. The U.S. launch is expected during 1Q15 (after the DEA de-scheduling process) and EU launch during 2Q15.” 

The analyst added, “Chronic pain is self-limiting and incurable, and opiates have become the mainstream therapy. However, OIC is a debilitating side-effect of opiates. IMS data indicates that there were 26.6M individuals in the U.S. who were treated with opioids for at least 30 days during 2013. Of these about 41% were also treated for OIC symptoms with laxatives. IMS data indicates that in at least 50% of the patients, OTC laxatives did not provide the necessary clinical benefit. Hence, we estimate that up to 5M individuals in the U.S. are potential targets for Movantik.”

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 3.7% and a 33.3% success rate. Chattopadhyay has a -8.3% average return when recommending NKTR, and is ranked #1394 out of 3309 analysts.

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