Market Overview

Infinity Pharma At Risk Of AbbVie 'Walking Away'

Infinity Pharma At Risk Of AbbVie 'Walking Away'
Related INFI
25 Stocks Which Rallied Four Days, Then Sold Off Yesterday
The Biggest Pharma Stock Blowups Of 2016
Benzinga's Top Initiations
The Market In 5 Minutes: Netflix Dominates, Goldman Sachs Keeps Banks Flowing
Why You (And Another Company) Should Buy Gilead - Dividend Sensei (Seeking Alpha)

Infinity Pharmaceuticals Inc. (NASDAQ: INFI) released the initial data for Duvelisib on June 15, which were below expectations.

Morgan Stanley’s Matthew Harrison downgraded the rating on the company from Overweight to Equal Weight, while lowering the price target from $11 to $1.

Harrison believes that due to the disappointing data, there was risk of Infinity Pharma’s partner, AbbVie Inc (NYSE: ABBV) walking away from the development of the drug.

“While there is upside if Abbvie provides a milestone payment or continues development, we see significant uncertainty,” the analyst mentioned.


The top-line DYNAMO data for Duvelisib show an overall response rate of 46 percent, which were all partial responses, with 20 percent patient having Gr3+ infection.

Harrison pointed out that the response rate was below expectations, while the infection rate was higher than anticipated, despite prophylaxis.

Related Link: Morgan Stanley: 4 Reasons We're Downgrading Abbvie

“A suboptimal clinical profile is suggested by the combination of a lack of both a higher response rate and no CRs (complete responses),” the analyst stated, while adding that the results suggest that commercial success might be limited.

Estimate Revisions

Harrison now expects Duvelisib to receive approval for relapsed patients.

The revenue estimate for 2020 has been reduced from $370 million to $112 million, while the R&D spend estimate has also been lowered.

“The key to INFI is if Abbvie drops duvelisib (and thereby funding) or if management can get Abbvie to continue funding or provide a final payment. If management can secure funding its immediate path forward is clearer,” Harrison added.

Latest Ratings for INFI

Jun 2016Morgan StanleyDowngradesOverweightEqual-Weight
Jun 2016JefferiesDowngradesBuyHold
Jun 2016Wells FargoDowngradesOutperformMarket Perform

View More Analyst Ratings for INFI
View the Latest Analyst Ratings

Posted-In: Analyst Color Biotech Downgrades Health Care Price Target Analyst Ratings Trading Ideas General Best of Benzinga


Related Articles (INFI + ABBV)

View Comments and Join the Discussion!