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Wedbush Cuts Raptor Pharmaceuticals (RPTP) to Underperform; Analyst Sees Limited Market Opp

February 5, 2014 7:24 AM EST Send to a Friend
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Price: $8.27 -2.48%

Rating Summary:
    9 Buy, 2 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 23 | Down: 10 | New: 20
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Wedbush downgraded Raptor Pharmaceuticals (NASDAQ: RPTP) from Neutral to Underperform with a price target of $10.00. Analyst Christopher N. Marai thinks PROCYSBI’s market opportunity is limited to cystinosis.

"We are downgrading RPTP to UNDERPERFORM from NEUTRAL based on valuation and expectations for PROCYSBI’s ultimate market opportunity. PROCYSBI's quarter-over-quarter growth is slowing and the stock has risen on the potential for positive data from trials for the drug in new indications. We believe given the limited market size that growth in PROCYSBI sales will continue to slow in the coming quarters and may peak by YE:14. We do not anticipate a positive update from the Huntington’s trial in Q1:14 highlighting PROCYSBI's lack of opportunity in indications beyond Cystinosis," said Marai.

"We believe that slowing growth in quarterly sales will continue and is indicative of PROCYSBI’s limited market opportunity. We note that unlike other drug launches for typical rare diseases, PROCYSBI faces competition from a similar therapy that is 25x cheaper and potentially better tolerated. We also believe given the ease diagnosis and necessity of childhood kidney transplants that current patient estimates, 400-500 in the US, are robust leaving little room for upside," he added.

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

Shares of Raptor Pharmaceuticals closed at $15.32 yesterday.




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