Rigel Pharma Gets Bulls From JPMorgan Before New Phase 3 Data: What To Know

J.P. Morgan’s Anupam Rama believes that data from the two phase 3 trials of fostamatinib would be positive and that Rigel Pharmaceuticals, Inc.’s RIGL stock could see 90-150 percent upside if that was the case.

The analyst upgraded the rating on the company from Neutral to Overweight, with a price target of $5.

Rama also pointed out that in the event that the data was negative, the worst case scenario would a 55 percent downside to the stock, from its current levels.

Data Expectations

Top-line Phase 3 data for fostamatinib in idiopathic thrombocytopenic purpura (ITP) is expected in mid-2016, with a potential NDA filing in early-2017. The analyst estimates worldwide peak sales for the drug at $360 million.

Rama mentioned that physician feedback for the earlier Phase 2 data had been positive, highlighting robust early proof of concept.

“We view ~20 percent improvement in sustained response over placebo as the beatable / clinically meaningful phase 3 activity benchmark,” Rama stated, while adding, “Based on physician commentary, we do not have any over-arching safety concerns.”

The analyst believes that there is high probability of success for the ongoing Phase 3 trials, and noted that topline fostamatinib data, expected in mid-2016, could be a “transformative catalyst” for Rigel Pharmaceuticals.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorLong IdeasUpgradesAnalyst RatingsTrading IdeasAnupam RamaJ.P. Morgan
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!