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Here Are The 4 Commercial Launches In 2017 That Earned Tesaro A Buy Rating At Argus

Here Are The 4 Commercial Launches In 2017 That Earned Tesaro A Buy Rating At Argus
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TESARO Inc (NASDAQ: TSRO) has strong prospects in immuno-oncology, as it prepares for four commercial launches in 2017 and plans to initiate pivotal studies for several products, Argus’s Stephen Biggar said in a report. He initiated coverage of the company with a Buy rating and a price target of $210.

Tesaro reported a net loss for fourth-quarter 2016 of $2.60 per share, versus $1.89 in Q4 of 2015. Revenue came in at $4.2 million, compared to $0.2 million in Q4 2015.

Product Pipeline

Tesaro has planned new product launches in the US and Europe. “We expect continued losses in the near term, as the company markets Varubi in the U.S., seeks approval for the drug in Europe, and prepares for the U.S. launch of niraparib for ovarian cancer,” Biggar wrote.

Tesaro would likely continue to study niraparib as a treatment for breast and lung cancers. The analyst added that the company has a range of potential products, led by TSR-042, in the immuno-oncology space.

The company exited 2016 with $786 million in cash. This seems sufficient to fund Tesaro’s drug development program and the company could “access the capital markets on favorable terms if necessary,” Biggar mentioned.

The price target includes a 20 percent acquisition premium, as the probability of a takeover seems high, given the company’s progress in drug development and strong positioning in target markets.

At last check, shares of Tesaro were up 3.34 percent at $158.75.

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Latest Ratings for TSRO

Mar 2018Morgan StanleyMaintainsOverweightOverweight
Feb 2018BarclaysMaintainsEqual-WeightEqual-Weight
Feb 2018Credit SuisseMaintainsOutperformOutperform

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