UPDATE: Bank of America Lowers Nektar Therapeutics PO, Maintains Underperform
In a report published Tuesday, Bank of America lowered its price objective on Nektar Therapeutics (NASDAQ: NKTR) from $7.50 to $7.00 and maintained its Underperform rating.
Bank of America noted, "following top line ph 3 results for naloxegol in OIC, we have lowered our peak share to 5% (from 10%) in 2020, more than offsetting increased probability of approval. This has lowered our PO for NKTR shares to $7 from $7.50. While there is increased concern that NKTR/AZN may have to assess CV risk in naloxegol (unlikely in our view), we are more concerned about efficacy in the phase 3 studies (KODIAC-04 and -05). In the -05 study, the response rate for the lower dose (12.5mg) was not significant (p=0.202) and the 25mg dose just made the cutoff (p=0.021). Based on the statistical significance levels provided, and a standard deviation estimate derived from THRX and CBST studies, we estimate the PBOadjusted response rate for the 25mg naloxegol dose to be in the 11-16% range, well below the 30% levels achieved by the THRX and CBST drugs."
Nektar Therapeutics closed at $7.04 on Monday.
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