FBR Capital Starts Synta Pharma. (SNTA) at Outperform

After the close, FBR Capital initiated coverage on Synta Pharma. (NASDAQ: SNTA) with a Outperform rating and a price target of $6.00.

Analyst Christopher James commented, "Synta is a developmental-stage biotech company focused exclusively on small molecule drugs for oncology. Specifically, Synta is developing drugs that inhibit Hsp90, a chaperone protein that plays a critical role in tumor survival. The company's lead drug candidate, ganetespib, is the most advanced Hsp90 inhibitor and potential best-inclass compound in Phase III development for non-small cell lung cancer (NSCLC). Importantly, ganetespib is the only Hsp90 inhibitor in development to demonstrate a positive, statistically significant survival benefit in a large randomized Phase II study (GALAXY-1). Our investment thesis is driven by three debatable points: (1) potential for success in the Phase III GALAXY-2 study with ganetespib in secondline NSCLC, (2) potential for Synta to expand use of ganetespib in other cancer indications by leveraging the investigator-sponsored trials (ISTs), and (3) potential to further scale its pipeline through partnerships. Over the next 12 months, we see numerous clinical milestones that, if positive, could be meaningful catalysts for the stock."

For an analyst ratings summary and ratings history on Synta Pharma. click here. For more ratings news on Synta Pharma. click here.

Shares of Synta Pharma. closed at $2.93 yesterday.

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