Roth Capital Upgrades Prosena To Buy, Sees %175 Upside For The Stock

In a research note released yesterday, Roth Capital analyst Debjit Chattopadhyay reiterated coverage with a Buy rating on shares of Prosensa Holding (RNA), and raised his price target to $17 (from $12). 

Chattopadhyay noted, “The 120-week data from Sarepta (SRPT-Buy) highlights the challenges of DMD, where stabilization of patients is the treatment objective. For exon skipping to be effective, it needs preexisting myofibers. Unfortunately, as patient’s age, myofibers are replaced by fibrotic connective tissue, leaving progressively less muscle than can be rescued. The FDA and EMA are more receptive to these challenges and we anticipate accelerated approval during 2015 allowing treatment as early as possible”.

The analyst concluded, “We believe that Sarepta’s technology is superior to Prosensa’s and are not making changes to our market share assumptions. The price target reflects the higher probability of accelerated approval and lower corporate tax rate in the Netherlands. Note that Prosensa has two advantages over Sarepta: (1) Blocking IP in the EU, and (2) Chemistry is easier to scale up providing significant COGS benefit”.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform analyst Debjit Chattopadhyay has a 1.6% average return and a 38% success rate. Chattopadhyay is ranked #1945 out of 3003 analysts.

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