Repligen Corp. (RGEN) To Outperform

According to a report released by Rodman & Renshaw, Repligen Corp.(NASDAQ: RGEN)(FREE stock trend analysis) failed to meet the specified primary end-points for the phase 3 study of RG1068. Since, RG1068 is expected to have only marginal commercial potential, Rodman & Renshaw analyst Elemer Piros, has maintained its 12-months price target of $9. Mr. Piros has also maintained the ‘Outperformer’ rating for the stock.

Phase 3 study involved baseline-controlled, single dose study enrolling 258 patients across 23 sites in USA and Canada. Although the results did not satisfy the primary endpoints, however, it was quite close to them. Even if the firm has to repeat phase 3, resulting delay is likely to have only marginal effect on company’s valuation. Commercial value of RG1038 is pegged at peak US sales of $50-75 Million.