UPDATE: Bank of America Raises PT on Durata Therapeutics after Positive Phase 3 Trial Data

In a report published Monday, Bank of America reiterated its Buy rating on Durata Therapeutics DRTX, and raised its price target from $12.00 to $14.00. Bank of America noted, “DRTX reported top-line data from its second pivotal phase 3 trial, DISCOVER-2, for dalbavancin in abSSSI. The early response rate at 48-72 hours (FDA primary endpoint) was 77% in the dalbavancin arm vs. 78% in the vancomycin/ linezolid arm and within a 10% non-inferiority margin. With positive data from both phase 3 trials, DRTX is on track to file with the FDA and EMA by mid-year and YE 2013, respectively. We increased our US and EMA probability of approvals to 80% (from 65%) and to 75% (from 55%), raising our DCF-derived PO by $2, to $14. We were previously cautious about EU approval, as DISCOVER-1 data just met the EMA primary endpoint, but DISCOVER-2 data were more favorable. Dalba's designation as a QIDP should result in a 6-8 month FDA review period.” Durata Therapeutics closed on Friday at $7.60.