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Deciphera Pharma Scores A Sell-Side Recommendation

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Deciphera Pharma Scores A Sell-Side Recommendation
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Deciphera Pharmaceuticals Inc (NASDAQ: DCPH)’s kinase switch control platform has largely gone unnoticed on the Street.

The nascent portfolio caught an analyst's attention this week. 

The Rating

B Riley analyst Madhu Kumar initiated coverage on Deciphera with a Buy rating and $43 price target.

The Thesis

The analyst expects Deciphera’s DCC-2618 to post positive Phase 3 results in fourth-line gastrointestinal stromal tumors in 2019 and to start Phase 3 studies for second-line GIST in the latter half of 2018.

Phase 1 studies for the fourth-line indication demonstrated efficacy in disease control rate and early progression-free survival data. Early results in the second-line indication lend additional confidence in success against Pfizer Inc. (NYSE: PFE)’s Sutent.

“Consequently, the second-line opportunity for DCC-2618 could provide a critical edge in the GIST market, particularly in relation to competing c-Kit/PDGFRα TKI avapritinib from Blueprint Medicines Corp (NASDAQ: BPMC), for which Phase 3 studies in third-line GIST, versus Stivarga from Bayer, are guided to start in the first half of 2018,” Kumar said in a Thursday note.

“Taken as a whole, we see a broader opportunity for DCC-2618 in GIST in the second-line setting.”

Price Action

At the time of publication, Deciphera shares were up 0.8 percent at $28.93.

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Latest Ratings for DCPH

DateFirmActionFromTo
Feb 2018B. RileyInitiates Coverage OnBuy
Oct 2017InstinetInitiates Coverage OnBuy
Oct 2017JMP SecuritiesInitiates Coverage OnMarket Outperform

View More Analyst Ratings for DCPH
View the Latest Analyst Ratings

Posted-In: B Riley Madhu KumarAnalyst Color Biotech Price Target Initiation Analyst Ratings General Best of Benzinga

 

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