UPDATE: Bank of America Initiates Durata Therapeutics at Buy with $12 PO

Bank of America initiated coverage on Durata Therapeutics

with a Buy rating and a price objective of $12 a share on the potential that dalbavancin may represent a paradigm treatment change. Bank of America noted, "Durata is a new public company developing dalbavancin, a long-acting antibiotic for treating gram positive infections including MRSA. Dosing for skin infections is two infusions, a week apart, which could be delivered in the ER or in an out-patient setting, potentially helping to avoid hospital stay for a portion of the 2mn admissions per year for serious skin infections. Valuation is attractive in our view, with potential upside from near-term phase 3 results, but we expect it could take many years to change the treatment paradigm." Durata Therapeutics closed at $7.35 on Friday.