Cowen Bullish on Idera Pharmaceuticals Inc (IDRA) Following IMO-9200 Licensing Deal

This morning, Idera Pharmaceuticals Inc (NASDAQ:IDRA) announced a licensing and collaboration agreement with Vivelix for rights to develop and market IMO-9200, a TLR 7/8/9 antagonist for non-malignant gastrointestinal (GI) disorders.

Cowen analyst Boris Peaker reiterates an Outperform rating on IDRA without listing a price target.

Peaker asserts, “We believe that investors have written off ‘9200, so a quick licensing with $15M upfront is an incremental positive to the overall Idera story.”

Moreover, from the analyst’s perspective, this licensing deal is to the biotech firm’s advantage, explaining, “Today’s announcement is-line with Idera’s goals as we view Vivelix as a favorable partner for IMO-9200.” The firm had completed an IMO-9200 trial prior to the Vivelix announcement, evaluating healthy volunteers and revealing activity in preclinical models of inflammatory bowel disease. The data was presented last year at the Digestive Disease Week (DDW) conference.

Looking at the next steps, Peaker notes, “We view IMO-9200 as a follow-on to Idera’s first TLR 7/8/9, IMO-8400, since the two molecules are very similar to each other in terms of their target and potency. We note Idera will continue to develop its wholly-owned TLR 7/8/9, IMO-8400, in dermatomyositis.”

Ultimately, “Idera is well financed into 2018 and beyond. The company ended 3Q16 with cash/ equivalents of $54.4M which does not include the net proceeds of $48.9M from an equity financing in October 2016. The Vivelix deal results in an additional $15M upfront payment to Idera, further strengthening its cash position,” Peaker surmises.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, five-star analyst Boris Peaker is ranked #302 out of 4,245 analysts. Peaker has a 42% success rate and realizes 11.6% in his annual returns. However, when recommending IDRA, Peaker loses 8.5% in average profits on the stock.

Additionally, Heather Behanna at Wedbush rates a Buy on IDRA with a $6 price target, which represents a 235% increase from current levels, and Edward Tenthoff at Piper Jaffray rates a Buy with a $4 price target, which represents a 123% increase from where the stock is currently trading.

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