Roth Capital Sees 93% Upside In Prosensa But Financial Overhang Still Exist


In a research note issued today, Roth Capital analyst Debjit Chattopadhyay reiterated a Buy rating on shares of Prosensa Therapeutic (NASDAQ:RNA) with a $17 price target, which represents a potential upside of 93% from where the stock is currently trading.

The following bullets contain some highlights from this report: 

  • Prosensa has initiated re-dosing patients through a special study protocol. Patients will be closely monitored for any treatment emergent side effects, which is likely to include weekly measurements of blood chemistry and urinalysis. 
  • Prosensa intends to file an NDA during 4Q 2014. We anticipate the FDA will convene an advisory committee meeting during 1H-2015 and believe the thought leaders will likely vote in favor of approving both drisapersen and eteplirsen during 2H-2015.
  • In our opinion, the $150M shelf continues to be an overhang on the stock as Prosensa would require additional capital prior to commercial launch. However, we believe any secondary offering is unlikely until the FDA has accepted the NDA filing.

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 4.2% and a 40.0% success rate. Chattopadhyay has a -10.1% average return when recommending RNA, and is ranked #1422 out of 3304 analysts.

 

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