Galectin Therapeutics (GALT) May Have Best Read-Through From Allergan's Tobira (TBRA) Deal - H.C. Wainwright's Arce
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
- Rockwell Automation (ROK) Said to Attract Takeover Interest from Schneider Electric - Source
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
While investors are flipping out about the premium Allergan (NYSE: AGN) paid for Tobira Therapeutics (NASDAQ: TBRA), H.C. Wainwright analyst Ed Arce told StreetInsider in an interview that the premium was exaggerated given the fact that the market misread Tobira's Phase 2b trial results in late July; sending the stock sharply lower instead of sharply higher after the primary endpoint was missed but CENTAUR did demonstrate a clinically and statistically significant improvement in fibrosis of at least one stage without worsening of NASH, one of two key secondary endpoints, after only one year of treatment.
While a number of NASH-related plays are seeing upside today amid the news, Arce views Galectin Therapeutics (NASDAQ: GALT) as having the best read-through given its anti-fibrosis NASH drug GR-MD-02. The Company expects to report the top line results from a Phase 2 clinical trial by the end of the month, Arce notes. While the trial is small, if it can show a meaningful degree of improvement it would be very positive for the stock and can put the under-the-radar name on the radar, he said. Arce has a Buy rating and $8 price target on GALT, which suggests 323% upside despite today 13% move higher in the stock.
Other NASH stocks covered by Arce include Galmed Pharmaceuticals (NASDAQ: GLMD), which is focusing on earlier stage NASH. He also likes and covers Conatus Pharmaceuticals (NASDAQ: CNAT), which focuses on the most severe NASH that has already progressed to psoriasis. Acre said there is little activity at this end of the severity spectrum.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Valeant's (VRX) Weak Business Could Force it to Refinance Debt - Wells Fargo's Maris
- Qualcomm (QCOM) and NXP Semiconductors (NXPI) agreed on $110/sh deal - CBNC's Faber
- Microsemi (MSCC) Will Be 'Solid Target' Once Leverage is Lower, Says RBC
Create E-mail Alert Related CategoriesAnalyst Comments, Hot Comments, Rumors, Trader Talk
Related EntitiesH.C. Wainwright, Ed Arce
Sign 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!