Inotek Pharmaceuticals (ITEK) PT Raised to $29 at Piper Jaffray

Piper Jaffray analyst Joshua Schimmer reiterated an Overweight rating and raised his price target on Inotek Pharmaceuticals (NASDAQ: ITEK) to $29.00 (from $9.00).

Schimmer commented, "As we pass the midway point of 2H15, we are refreshing our thinking on our coverage universe. ITEK recently garnered considerable investor interest when it announced the FDA had agreed upon a placebo controlled P3 trial design for its glaucoma drug, trabodenoson. We had highlighted this as a possibility and were pleased to see the FDA agree to this. This favorable update helps derisk ITEK by providing what may be a lower bar for efficacy in P3 by providing a differentiated commercial message as one of the few products to beat a placebo in a controlled trial, and by establishing a higher price point so future capital raises should be less dilutive than they would have been. We are revising our assumptions, lowering our discount rate from 11% to 10.5% and lowering the amount of share dilution. As a result, we increase our PT from prior $9/share to a new $29/share. Our 5.5% terminal growth assumption is unchanged."

For an analyst ratings summary and ratings history on Inotek Pharmaceuticals click here. For more ratings news on Inotek Pharmaceuticals click here.

Shares of Inotek Pharmaceuticals closed at $16.76 yesterday.

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