Retrophin Transformative Event In Sparsentan Data

Not often do you see sell-side firms throwing around weighty phrases such as "transformative event" for a specific company. However, JMP did just that in a note this morning for Martin Shkreli's old company Retrophin, Inc

RTRX

. Within the next quarter, JMP expects to see proof-of-concept data for Sparsentan, a dual ETA & ARB receptor blocker for patients with FSGS. They believe this is a 'transformative' event for shares, highlighting 3 specific reasons:

1st proof-of-concept data to establish sparsentan in FSGS setting.
Trial could registration enabling if results are robust enough
This is Retrophin's first asset to emerge from the clinical pipeline.

Based off their own research, they think a 20-50% reduction in proteinuria, which would make it more meaningful on statistical and clinical level against current steroid treatments today. Despite this, JMP only assigns a 30% probability of success to the program. Highlighting the importance to their $22 price target, JMP says sparsentan currently supports greater than $4/share of said target, nearly 20% of Retrophin's valuation.

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