Roth Remains Positive on Concert Pharma (CNCE) Following Equity Offering; Affirms 'Buy' Rating

Roth Capital affirms Concert Pharmaceuticals (Nasdaq: CNCE) with a Buy rating and $19 price target following a $46.7 million equity raise.

Analyst Joseph Pantginis commented, This deal and the previous acquisition of Avanir by Otsuka in December 2014, serve as external validation for the deuterium-based technology developed by CNCE, in our view. We believe these deals could help restore investor confidence with the recent hiccups due to the nonclinical toxicity issues seen with CTP-354.

Additionally, this acquisition could bring in a substantial amount of cash above and beyond the recent equity raise. On the clinical front, recall that partner Avanir/Otsuka is expected to engage the FDA with regards to the planned Phase III study of AVP-786 for treatment of agitation in Alzheimer's disease. Additionally, we expect to receive an update later in the year regarding SPA protocol negotiations for CTP-499 so as to inform next development steps (likely in hands of partner).

Additional milestones expected this year are data from the Phase I study of JZP-386 for narcolepsy in 2Q15, completion of the Phase I study of CTP-730 in inflammatory disease upon which it will be entitled to milestone development payment from partner Celgene (Nasdaq: CELG). Finally, recall that CNCE announced its plans to advance deuterated ivacaftor into the clinic in 1H15. The company aims to assess two analogs of the molecule in cystic fibrosis patients in a single and multiple ascending dose study.

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

Concert Pharmaceuticals closed at $15.15 yesterday.

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