Roth Capital Turns Off Lights On Prosensa Following BioMarin’s Acquisition


Roth Capital analyst Debjit Chattopadhyay downgraded shares of Prosensa Holding (NASDAQ:RNA) to Neutral with a price target of $17.75, following the news that Biomarin (NASDAQ:BMRN) will acquire Prosensa for $17.75/ share.

Chattopadhyay commented: “The unexpected acquisition ahead of a risky NDA submission has taken the DMD sector by a surprise. In essence BMRN is paying $840M for Prosensa’s generation-1 chemistry, which is potentially inferior to competitor Sarepta’s (SRPT-Buy). While Prosensa does have blocking IP over SRPT in the EU, the market for drisapersen in the U.S. could be limited upon eteplirsen’s approval. Given the regulatory and clinical risks, we do not expect additional bidders for Prosensa and are moving to the sidelines.”

The analyst added, “Recall that Prosensa is in the process of a rolling NDA filing, which was expected to be completed during 1Q15. While the global regulatory environment has become somewhat favorable, the commercial impact of drisapersen, especially in the U.S., could be limited should competitor Sarepta’s eteplirsen also gain approval during 2016.”

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 -12.7% and a 35.0% success rate. Chattopadhyay has a 17.6% average return when recommending RNA, and is ranked #3341 out of 3377 analysts.

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