PTC Therapeutics (PTCT) adds its name to those biotechs offering up shares with a $75M secondary, with underwriters granted a 30-day greenshoe option to buy another 15% of however many shares end up being sold.
PTCT says the decision underscores the importance of its Phase 3 clinical trial, which is on track to complete enrollment in mid-2014 with top-line data expected in mid-2015; PTCT intends to request a re-examination of the opinion with a final outcome expected in Q2 2014.
PTC Therapeutics (PTCT -1.8%) is volatile today on heavy volume. Traders are attributing the action to Wedbush initiating the stock earlier with an Outperform rating and a hefty $55 price target. The firm thinks that the market has broadly overlooked ataluren's efficacy in Phase IIb trials in nmDMD, and the confirmatory trial is highly likely to yield a positive-read out in mid-2015. Wedbush's new coverage comes on the coattails of Credit Suisse, who started the shares with an Outperform yesterday.
PTC Therapeutics (PTCT) rises 2.6% premarket after Credit Suisse starts the shares at Outperform with a $24 price target. Also initiating coverage is JPMorgan (Overweight, price target $20). The stock looks set to retrace all of its post-IPO losses suffered after some commentators raised questions about the efficacy of lead product candidate ataluren.
Recently public PTC Therapeutics (PTCT -15.9%) plummets after a negative article published at PLOS Biology and a subsequent piece by SA contributor Prop Think question the efficacy of ataluren, the company's lead product candidate.
A paper in the PLOS Biology journal questions the mechanism of PTC Therapeutics' (PTCT) Ataluren (PTC124) drug, which is designed to restore the genetic production of a functional protein and potentially treat genetic diseases. Researchers found "no evidence of activity for PTC124" across a "diverse range of in vitro reporter assays." The paper comes just six days after PTC Therapeutics carried out an upsized IPO at $15 a share.