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UPDATE: Cantor Fitzgerald Upgrades Durect Corp (DRRX) to Buy on Attractiveness of Pipeline Asset

March 3, 2015 6:37 AM EST
Get Alerts DRRX Hot Sheet
Price: $1.35 +4.65%

Rating Summary:
    8 Buy, 3 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 8 | Down: 4 | New: 35
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(Updated - March 3, 2015 10:27 AM EST)

Cantor Fitzgerald upgraded Durect Corp (NASDAQ: DRRX) from Hold to Buy with a price target of $2.00. Analyst Irina Rivkind Koffler pointed to recent news on DUR-928, a Phase I pipeline asset.

"Durect announced an interesting Phase I pipeline asset and we are giving DRRX another $1.00/share in value associated with this program, which we believe could increase its attractiveness as a takeout candidate," said Koffler.

"Mgmt described DUR-928 as a safe, endogenous small molecule (NCE) that regulates lipid homeostasis, inflammation, and cell survival. Animal studies have demonstrated that this cholesterol metabolite improved post-ischemia organ function and survival in acute disease models and increased insulin sensitivity and glucose tolerance while lowering triglycerides, cholesterol, and ALT and AST in chronic disease models. The company plans to study both acute and chronic indications like Acute Kidney Injury and NAFLD/NASH utilizing IV and oral forms of the drug," continued the analyst.

Koffler added, "Mgmt sourced the compound in 2012 through an employee's academic contact and indicated that the drug had never been shopped. Additionally, mgmt indicated that it had conducted most of the animal trials with the drug it had manufactured itself, which lessened our concerns about fraud. Later in 2015 we should see data from a multiple-ascending dose Phase I trial of the oral formulation."

For an analyst ratings summary and ratings history on Durect Corp click here. For more ratings news on Durect Corp click here.

Shares of Durect Corp closed at $1.03 yesterday.



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