Retrophin (RTRX) Defended at Deutsche Bank
Get Alerts RTRX Hot Sheet
Rating Summary:
11 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Join SI Premium – FREE
Deutsche Bank maintained a Buy rating on Retrophin (NASDAQ: RTRX) with a price target of $55. Yesterday Retrophin reported a settlement with Questcor Pharma (NASDAQ: QCOR). Under the terms of the Settlement Agreement, Questcor paid the Company $15.5 million related to Case No. SACV14-00026-JLS. Analyst Robyn Karnauskas defended the stock, saying recent weakness and negative sentiment following the settlement was "incorrect."
"We note that the lawsuit with Questcor was related to their acquisition of Synacthen from Novartis (an ACTH drug). Originally, RTRX was going to acquire the drug, but Questcor came in at the last minute and acquired it themselves. This lawsuit was brought by the former management team accusing Questcor of creating an ACTH monopoly," said Karnauskas.
The analyst continued, "However, speaking with the company; they believe that some have misinterpreted the settlement as impacting the RE-034 pre-clinical development program (also an ACTH drug). They clearly indicated that the settlement had no impact whatsoever on RE-034 and that they have an additional $15.5M to invest in their current programs and BD."
Karnauskas added, "We believe this is overreaction because RE-034 is not in our models and we do not think it is in street models either. The company has not disclosed potential indications or the development path forward."
For an analyst ratings summary and ratings history on Retrophin click here. For more ratings news on Retrophin click here.
Shares of Retrophin closed at $32.59 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- EQT Corp. (EQT) PT Lowered to $46 at Wolfe Research
- Deutsche Bank Upgrades MSCI Inc. (MSCI) to Buy, 'Compelling entry point for long-term investors'
- Lockheed Martin (LMT) PT Raised to $487 at Deutsche Bank
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, Hot Comments, LitigationRelated Entities
Deutsche Bank, Definitive AgreementSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!