H.C. Wainwright Initiates Radius Health With Buy Rating, $55 Target

The company's lead product candidate is abaloparatide (ABL), which is currently under review in Europe and the United States. "We expect launches in 4Q16 and 1Q17," said Werther. The analyst expects ABL to compete with Eli Lilly and Co LLY's Forteo, "which posted worldwide sales of $1.3 billion in 2015 and a greater than 8 percent five-year CAGR."

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Additionally, ABL is expected to outperform Forteo, as Radius Health's AVL showed a 43 percent reduction in non-vertebral fractures while Forteo only showed a 28 percent reduction.

Werther's projected future catalysts include:

• EMA's announcement of a positive opinion for ABL in 2H16
• Signing of a possible overseas partner
• ABL phase 2 results and plans for moving forward in mid-2016

Due to the Werther's analysis, H.C. Wainwright placed a 2016 EPS estimate of $(3.86).