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Cowen Says PTC Therapeutics Is A Buy

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Shares of PTC Therapeutics, Inc. (NASDAQ: PTCT) rose 7 percent on Wednesday after Cowen analysts Ritu Baral and Elyse Shapiro upgraded the stock from Market Perform to Outperform, setting a $120 price target. The promotion comes in anticipation of the upcoming ACT-DMD data in the fourth quarter.

The firm expects "positive Ph3 data in Oct/Nov based on the totality of Ph2 data precedent." The analysts also see "underappreciated value in the Ph1/2 MPS1 program, which will have first biomarker data in late '15."

Cowen highlights a few points to take into account:

  • The totality of ataluren's Ph2 DMD data "Establishes Proof of Concept [and] Derisks Ph3 ACT-DMD." They now see a chance of success of more than 50 percent for upcoming Ph3 DMD data.
  • "A prospective subgroup analysis of patients by baseline 6MWD < or >350m, showed patients with a baseline <350m treated with the Ph3 dose showed a 68m improvement versus PBO (p=0.0053)."
  • The Ph3 ACT-DMD is better designed: it minimizes variability and "enriches the study for those patients most likely to respond."
  • "Ataluren's bell-shaped dose response curve, while unusual, has been replicated in almost every preclinical and clinical model investigated, and even seen with other read-through therapies. While the hypothesis behind the phenomenon has not yet been conclusively proven, the consistency of the signal" gives analysts comfort.

Latest Ratings for PTCT

DateFirmActionFromTo
Apr 2019BernsteinInitiates Coverage OnOutperform
Nov 2018Cantor FitzgeraldMaintainsOverweightOverweight
Nov 2018RBC CapitalMaintainsOutperformOutperform

View More Analyst Ratings for PTCT
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Posted-In: CowenAnalyst Color Biotech Health Care Price Target Reiteration Analyst Ratings General

 

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