UPDATE: Wedbush Initiates PTC Therapeutics at Outperform on Ataluren Potential

In a report published Wednesday, Wedbush analyst Christopher N. Marai initiated coverage on PTC Therapeutics PTCT with an Outperform rating and $55.00 price target.

In the report, Wedbush noted, “PTC is developing ataluren, a molecularly targeted Phase III drug candidate for the treatment of genetically-defined rare and ultra-rare diseases caused by nonsense mutations. PTC is currently enrolling patients with Duchenne muscular dystrophy caused by nonsense mutations (nmDMD) in a large randomized Phase III clinical trial expected to readout mid:2015. Ataluren may also receive conditional approval in the EU in YE:13 based on the results of a Phase IIb trial in nmDMD. Ataluren may be broadly applicable, beyond initial indications, to 12% of all hereditary diseases and nonsense mutation driven cancers. There are ~2,400 genetically-defined rare diseases caused by nonsense mutations. We estimate that ataluren could be worth >$1.5 billion in peak sales in nmDMD and nmCF alone.”

PTC Therapeutics closed on Tuesday at $16.57.