Is This Stock A Vertex Pharma Clone?

In a report published Friday, Deutsche Bank analysts maintained a Buy rating on PTC Therapeutics, Inc PTCT, while rating the price target from $75 to $115, following checks and management guidance.

The company's guidance implied that the DMD and CF nonsense mutation markets may be larger than was being estimated. "EU DMD doc checks suggest faster uptake & larger share while CF docs suggest a much larger percent of nonsense patients will be eligible for ataluren than we thought," the analysts said.

The company has indicated that they would be launching in other countries besides the US and EU. "Our doc checks in Europe also suggest docs are trying majority of patients on drug since there are no other drugs," the analysts said.

PTC’s franchise has "rapid earnings power" and two global orphan indications could be approved by 2017. The likely scenarios are that PTC would be:

1. the only approved drug in the foreseeable future
2. in high unmet need with motivated patient advocates
3. likely obtain high pricing

"This model has a lot of leverage once revenues emerge and that reminds us of Vertex’s VRTX current operating status. Our new model suggests positive EPS by 2017."