Market Overview

4 Biotech Stocks Initiated At Buy: Acceleron, Tesaro, Mirati, Fate

4 Biotech Stocks Initiated At Buy: Acceleron, Tesaro, Mirati, Fate
Related XLRN
The Daily Biotech Pulse: MediciNova Gets Orphan-Drug Status, KemPharm To Offer Shares, Emergent Buys Vaccine Maker
The Daily Biotech Pulse: Exelixis Liver Cancer Drug On Track For European Approval, Medtronic Goes Shopping, Opiant Snags BARDA Funding
58 Biggest Movers From Yesterday
The Daily Biotech Pulse: Syndax Lung Cancer Trial Disappoints, Gemphire To Trim Workforce, Opiant's Offering

H.C. Wainwright has initiated bullish coverage of four healthcare stocks headed into the end of 2017. Analyst Edward White explained his positive take on the four stocks in a research note on Thursday. Here’s a rundown of what he had to say.

Acceleron Pharma - Buy

White said the future of Acceleron Pharma Inc (NASDAQ: XLRN) lies in its leading drug candidate, Iuspatercept. Acceleron is currently co-developing the drug with Celgene Corporation (NASDAQ: CELG). H.C. Wainwright is projecting peak sales of $2 billion for Iuspatercept, or roughly $400 million for Acceleron.

“We think luspatercept could be brought to the market by late 2019, and it will achieve blockbuster sales by 2026,” White wrote. H.C. Wainwright has a $57 price target for Acceleron stock.

Fate Therapeutics - Buy

White said Fate Therapeutics Inc (NASDAQ: FATE) has a strong pipeline of best-in-class drug candidates to treat cancer patients and other diseases with major unmet needs. According to White, the company’s leading candidate, ProTmune, has the highest probability of success, but that its NK-100 candidate has the highest upside.

“We project revenues of $329M and $68M for ProTmune and NK-100, respectively, in 2026,” White wrote. H.C. Wainwright has a $7 price target for Fate stock.

Related Link: Express Scripts: Another Potential Amazon Victim?

Mirati Therapeutics - Buy

White said Mirati Therapeutics, Inc. (NASDAQ: MRTX)’s precision oncology strategy will be a winner for long-term investors. Mirati is developing drugs that target specific mutations that are known to cause cancer. The stock recently jumped following positive data presented at the Chicago Multidisciplinary Symposium in Thoracic Oncology.

“We note Mirati's products are in early development and project revenues of $210M, $175M, and $140M for glesatinib, sitravatinib, and mocetinostat, respectively, in 2026,” White wrote. H.C. Wainwright has a $20 price target for Mirati stock.


White said TESARO Inc (NASDAQ: TSRO) isn't getting enough credit for its U.S. Zejula launch and the rest of its impressive pipeline. He expects 2018 global revenue of $111 million from Varubi and $379 million from Zejula in 2018.

“We believe the stock’s current trading price serves as an attractive entry point for investors given the untapped potential for Zejula in other indications, including the front-line setting for ovarian cancer and Varubi in chemotherapy-induced nausea and vomiting,” White wrote.

H.C. Wainwright has a $158 price target for TESARO.

Related Link: A Deep Dive Into MannKind's Big Bet On Afrezza

Latest Ratings for XLRN

Sep 2018PiperJaffrayUpgradesNeutralOverweight
Sep 2018Morgan StanleyAssumesEqual-Weight
Jul 2018Morgan StanleyDowngradesOverweightEqual-Weight

View More Analyst Ratings for XLRN
View the Latest Analyst Ratings

Posted-In: Analyst Color Biotech Long Ideas Price Target Initiation Top Stories Analyst Ratings Trading Ideas Best of Benzinga


Related Articles (CELG + FATE)

View Comments and Join the Discussion!

Latest Ratings

VIABImperial CapitalUpgrades29.0
CDNSJP MorganUpgrades51.0
EBAYRBC CapitalDowngrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Transocean Vs. Diamond Offshore: A New Oil & Gas Pair Trade

'All Timing': Citron Covers Helios And Matheson Short