Here's Why Retrophin's DUET Data Pushes Upside To 129%

Shares of Retrophin Inc RTRX climbed more than 4 percent after it gave positive updated DUET data at the ASN meeting. Following this development, BMO analyst Do Kim raised the price target of the Outperform-rated Retrophin shares to $46 from $40.

The revised target price implies potential upside of 129 percent over Friday’s close of $20.08.

The DUET study analyzes sparsentan for the treatment of focal segmental glomerulosclerosis (FSGS), a rare kidney disorder.

“Our probability of success for Sparsentan increases to 55% from 45%, as we believe the results strengthen Retrophin's case for accelerated filing and launch in 2017,” Kim wrote in a note.

The analyst believes the FDA will consider a dose titration for approval given an apparent dose-response in efficacy and tolerability (hypotension), with manageable edema rates.

Sparsentan saw 12 percent edema rate versus 3 percent for irbesartan and it's a considerable improvement over ERAS, and in line with previous hypertension studies. Furthermore, data showed no meaningful worsening of edema from baseline.

“FDA acceptance of the proteinuria endpoint remains a risk, but we see growing evidence for proteinuria as a surrogate to kidney survival,” Kim added.

At last check, shares of Retrophin were up 4.6 percent to $21.