Orphazyme cut to sell at Guggenheim after regulatory snub
- Orphazyme (NASDAQ:ORPH) is trading ~3.4% higher in the pre-market today after losing more than 50% on Friday in reaction to its failure to win FDA approval for arimoclomol.
- With a $1.00 price target for the stock indicating a downside of ~86.4%, Guggenheim notes that there is “little optionality left in the stock,” and adds “it might make sense to wind down the company.”
- “Given these recent failures, lack of future development opportunities, and the need for financing” to advance the operations, there will be a “significant downside from current levels,” analyst Yatin Suneja argues. Last week, Orphazyme shares rose sharply leading up to the FDA decision on arimoclomol.
Arcus Biosciences draws buy rating from BTIG on the upcoming milestone
- Citing the data from interim analysis for ARC-7 trial expected in Q2 2021, BTIG analysts led by Thomas Shrader have rated Arcus Biosciences (NYSE:RCUS) buy with the price target of $57.00 per share implying a premium of ~147.2%.
- Targeting patients with non-small cell lung cancer, the company’s anti-TIGIT antibody domvanalimab could trigger $275M buy-in from Gilead subject to an overall response rate of 50% in the three-arm Phase 2 trial, the analysts argue.
- Early this year, Gilead Sciences raised its ownership stake in Arcus Biosciences to 19.5% from ~13.0%.
Paratek price target lifted at H.C. Wainwright after the selloff
- Paratek Pharmaceuticals (NASDAQ:PRTK) lost more than a tenth on Wednesday after the company announced that it would take two years for enrollment in a mid-stage study for Nuzyra (omadacycline) as a potential therapy for a bacterial infection in lung tissue.
- “We view the stock reaction as not only short-sighted but also one that ignores the incremental value created by the NTM program,” H.C. Wainwright wrote referring to Nontuberculous Mycobacterial (NTM) Pulmonary Disease targeted in the trial.
- The price target raised to $28.00 from $22.00 per share implies a premium of ~278.9%. Paratek has added ~3.1% in the pre-market.
- Paratek’s decision to remove $38M revenue linked to the second procurement of Nuzyra by Biomedical Advanced Research and Development Authority (BARDA) from its 2021 guidance is simply a timing issue, the analyst Ed Arce notes.
- “We believe that 2021 will be a transformative year for Paratek. We are excited to announce that BARDA has now initiated the first procurement of NUZYRA valued at ~$38 million,” Paratek CEO Evan Loh noted in the company’s Q1 2021 earnings call.
ResMed price target increased at Needham citing Phillips’ recall
- Needham analyst Mike Matson has boosted the price target for ResMed (NYSE:RMD) to $267.00 from $229.00 per share to imply a premium of ~12.4%.
- After a scenario analysis, the analyst has concluded that the recent decision by Philips to recall sleep apnea and ventilator machines would be positive for ResMed despite a varying impact given the ongoing supply chain constraints suffered by the company.
- Noting an overreaction in ResMed shares post-recall, Bank of America recently downgraded the company to underperform from neutral.
AMN Healthcare lower despite the bullish call from Truist
- AMN Healthcare Services (NYSE:AMN) is unchanged in the pre-market even after Truist raised its price target to a Street high of $112.00 from $102.00 to imply a premium of ~19.3%.
- Compared to the pre-COVID level, a 25% increase in bill rates could be on the cards for nursing and healthcare workers at Dallas, Texas-based company, according to the analyst Tobey Sommer who cites labor shortages.
- “After attending a nursing workforce conference last week, we came away with increased conviction that labor supply shortages could be a medium-term tailwind for the industry,” Sommer wrote.
- Seeking Alpha contributor Michael A. Gayed is neutral on AMN Healthcare as he notes the higher than average forward P/E multiple the company currently trades.
Singular Genomics initiated neutral at BofA citing rivalry
- Singular Genomics (NASDAQ:OMIC) has added ~4.6% in the pre-market even after Bank of America initiated its coverage with a neutral rating. The price target of $26.00 per share indicates an upside of ~8.8%.
- Despite its pursuit of a market opportunity estimated at ~$44 – 50B, Singular Genomics is not the only company in its field the analyst Michael Ryskin argues.
- In the coming years, the firm anticipates a fierce rivalry among Singular Genomics, Illumina, and a number of other entrants in the sub-sector of next-generation DNA sequencing. Recently IPOed Singular Genomics expected $224.4M in gross proceeds from its public debut in late May.
All share price moves are calculated based on the market close unless otherwise stated.