Kim believes upcoming Phase III data in August may drive "significant upside to shares." The analyst was especially hopeful for the near-term data readout for lead drug Fostamatinib in immune thrombocytopenic purpura (ITP), which "could be transformative for Rigel."
The analyst based his hopes on the "highly convincing Phase II results, where 50 percent of chronic ITP patients saw a sustained platelet response and in a disease with a limited placebo effect."
Signing With Ex-U.S. Partner Following Phase III
Best Case $9.00, Worst Case $4.00
"In our scenario analysis of the ITP data, we believe a best case outcome of significant >38 percent durable response rate would increase our DCF valuation to $9, versus a worst case of study failure resulting in shares likely trading near cash levels of $1 per share," noted Kim.
At time of writing, Rigel Pharmaceutical traded at $2.43, up 6.11 percent Monday.
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