We See Durata Shares Regaining Momentum, Says Roth Capital


In a research report issued today, Roth Capital analyst Ed Arce assigned a Buy rating on Durata Therapeutics (NASDAQ:DRTX) with a $26 price target, as the FDA has granted an SPA for Durata’s Phase 3 study of Dalvance in hospitalized community-acquired pneumonia (HCAP). In addition to the ongoing single-dose study in ABSSSI, Durata also announced the initiation of a Phase 3 study in pediatric osteomyelitis in 2015.

Arce wrote, “We are encouraged that Durata has chosen to design this trial with a single IV dose of Dalvance. Recall, in April, Durata initiated enrollment in a Phase 3b study of Dalvance for the approved ABSSSI indication with a single 1,500 mg dose, versus the dual dose regimen on the current label.” The analyst continued, “In our view, Durata continues to demonstrate strong execution in expanding Dalvance’s use in multiple indications. To wit, Durata now expects to have three Phase 3 trials of Dalvance in three separate indications next year: pneumonia (under SPA), osteomyelitis and single-dose ABSSSI.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ed Arce has a total average return of 14.4% and a 37.5% success rate. Arce has a -4.2% average return when recommending DRTX, and is ranked #487 out of 3315 analysts.

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