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UPDATE: Stifel Nicolaus Initiates Coverage on Ocera Therapeutics on Best-In-Class Mechanism of Action

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In a report published Monday, Stifel analyst Stephen Willey initiated coverage on Ocera Therapeutics, Inc. (NASDAQ: OCRX) with a Buy rating and $19.00 price target.

According to the report, OCRX’s lead product OCR-002 (ornithine phenylacetate) represents a best-in-class mechanism of action for the treatment of hepatic encephalopathy (HE) in patients with acute and chronic liver disease.

“We believe the combination of palatable clinical development risk, steady data/news flow,
strong patent estate, and potential to meaningfully improve the treatment algorithm in an already greater than $1B HE market opportunity with a rapidly expanding patient demographic creates a highly favorable risk/reward at these levels,” the report said. “We believe OCR-002’s dual mechanism of action represents a distinct competitive advantage that will prove complementary to current standard of care therapy and translate into improved patient outcomes.”

Some highlights from the report included:

-”We believe OCR-002’s Orphan Drug designation appropriately reflects the significant unmet medical need that currently exists in the acute-care setting.”
-”We believe continued progress on the development of an oral formulation to address an even larger maintenance market opportunity provides a significant source of optionality that remains excluded from our estimates.”
-”Risks to our investment thesis and target price include clinical development (trial failures), regulatory, commercialization (reimbursement and competitive), and balance sheet risks.”

OCRX closed Friday at $11.70.

Latest Ratings for OCRX

DateFirmActionFromTo
Dec 2016H.C. WainwrightInitiates Coverage OnBuy
Nov 2016Aegis CapitalInitiates Coverage OnBuy
Feb 2016Brean CapitalInitiates Coverage onBuy

View More Analyst Ratings for OCRX
View the Latest Analyst Ratings

Posted-In: Stephen Willey Stifel NicolausAnalyst Color Initiation Analyst Ratings

 

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