Nomura Securities Starts Tetraphase Pharmaceuticals (TTPH) at Buy, $54 PT

Nomura Securities initiates coverage on Tetraphase Pharmaceuticals (NASDAQ: TTPH) with a Buy rating and a price target of $54.00.

Analyst M. Ian Somaiya commented, "Our Buy rating is based on our view that eravacycline could be a best-in-class antibiotic for the treatment of complicated urinary tract infection (cUTI) and complicated intra-abdominal infection (cIAI), generating peak sales of $1.6bn. This is based on data that demonstrated broader coverage versus legacy and recently launched antibiotics. Combined with its oral step-down option, eravacycline would enable cUTI patients to begin treatment at the hospital (IV dose) and complete it at home (oral dose), which should lead to shorter hospital stays and more rapid adoption. TTPH in our view also carries lower relative clinical and regulatory risk given the release of positive top-line results from Phase III IGNITE 1 in cIAI and lead-in portion of the Phase III IGNITE 2 cUTI trial. We expect presentation of detailed data from these trials in 2015 (page 11) to support continued upside. However, the greatest potential source of upside is the passage of the DISARM Act, which could support higher pricing and the faster adoption rate of drugs approved after January 1, 2015."

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

Shares of Tetraphase Pharmaceuticals closed at $39.20 yesterday.

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