JMP Securities Defends Retrophin, Believes It's Well Positioned To Defend Thiola Franchise From Imprimis Pharma Competition

JMP Securities’ Lisa A Bayko maintained a Market Outperform rating for Retrophin Inc. RTRX, with a price target of $28. She said that Retrophin is well positioned to defend its Thiola franchise from potential competition from a compounded version to be launched by Imprimis Pharmaceuticals Inc IMMY in April.

Industry checks indicate that Imprimis intends to offer its compounded tiopronin + potassium citrate at a 70-80 percent discount to the list price of Thiola, which is currently priced at $30 per pill before discounts.

Imprimis also intends to work with PBMs like Express Scripts Holding Company ESRX, which in turn will work with payors like Aetna Inc AET to ensure that their compound offering does not require prior authorization to be prescribed by the physicians.

Preliminary feedback from experts indicated that physicians are likely to resist using a compounded version, given the risks associated with compound pharmacies, Bayko said, while adding that physicians are expected to choose the flexibility in “titrating both tiopronin and potassium citrate.”

“Further, we point out that while tiopronin needs to be taken without food, potassium citrate is supposed to be taken with meals,” the JMP Securities report noted.

Bayko further wrote, “We continue to monitor the situation for any impact to Thiola, but in the meantime, we believe Retrophin should be able to defend its franchise.”