Roth Capital Reiterates Buy On Ligand On The Heels Of FDA Approval For Promacta
Ligand Pharma (NASDAQ:LGND) partner GlaxoSmithKline (NYSE:GSK) announced it received FDA approval for the sNDA of Promacta for treatment of cytopenia in patients with severe aplastic anemia and this followed receipt of Breakthrough Designation. This approval represents a new treatment option for SAA option who failed prior immunosuppressive therapy.
In reaction to the approval, Roth Capital analyst Joseph Pantginis today reiterated coverage with a Buy rating on LGND and a $92 price target.
Pantginis commented: “Approval of Promacta for SAA represents a new option for patients who have failed current treatments. This expands the portfolio of Promacta, currently approved for idiopathic thrombocytopenia patients who failed prior treatments and in hepatitis C patients whose platelets are too low to begin interferon therapy. This indication portfolio for Promacta will potentially expand further with the ongoing Phase III SUPPORT study of Promacta in combination with azacitidine versus placebo plus azacitidine in high risk myelodysplastic syndrome (MDS). The goal of the study is to identify the proportion of patients who are platelet transfusion free during the first four cycles of treatment. Novartis/Glaxo have indicated that they intend to file for approval in MDS during 2015. With current revenue streams from Promacta and Kyprolis, anticipated near-term significant revenue contribution from Duavee and CE Melphalan, and increasing requests for Captisol, we believe LGND is positioned for continued projected EPS growth.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joseph Pantginis has a total average return of -6.2% and a 44.3% success rate. Pantginis has a -9.5% average return when recommending LGND, and is ranked #3205 out of 3264 analysts.