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BMO Sets Outperform Rating, $26 Target On Ra Pharmaceuticals

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BMO Sets Outperform Rating, $26 Target On Ra Pharmaceuticals

Ra Pharmaceuticals Inc (NASDAQ: RARX)'s lead drug, RA101495, could take about 15 percent of the refractory MG (Myasthenia Gravis) market, given the convenience of a daily subcutaneous administration, BMO Capital Markets’ Ian Somaiya said in a report. He initiated coverage of Ra Pharma with an Outperform rating and a price target of $26.

Ra Pharma offers investors “de-risked access to the multi-billion-dollar complement space,” which Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN) seems to have “left open to competition,” Somaiya commented.

The Advantages

Ra Pharma’s lead drug is a low dose subcutaneous injection that can be self-administered. Moreover, its seven-day half-life provides coverage for missed doses and potentially weekly delivery.

“Pre-clinical and Phase 1 data suggest that RA101495 may provide more complete and sustained inhibition of C5 thus preventing breakthrough hemolysis observed in ~20 percent of patients managed on Soliris,” Somaiya wrote.

Although ALXN-1210 is better than Soliris, and Alexion is making advancements in subcutaneous ALXN-1210. The analyst pointed out, however, that the volume of drug required may impact convenience, allowing Ra Pharma’s lead drug to gain market share, “especially in a single payor environment where discounted pricing could lead to active switching.”

Ra Pharma went public with an IPO on the NASDAQ in October.

Latest Ratings for RARX

DateFirmActionFromTo
Nov 2019Guggenheim SecuritiesDowngradesBuyNeutral
Nov 2019Stifel NicolausDowngradesBuyHold
Oct 2019Credit SuisseDowngradesOutperformNeutral

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