PTC Therapeutics (PTCT) PT Raised to $37 at Goldman Sachs, 'stock in an increasingly precarious position ahead of higher risk'

Goldman Sachs analyst Paul Choi raised the price target on PTC Therapeutics (NASDAQ: PTCT) to $37.00 (from $35.00) while maintaining a Sell rating.

The analyst comments "

Sepiapterin shows consistent efficacy and clean safety; MOVE-FA data later in May the next key catalyst. PTCT shares are trading up to a 52-week high (+42% YTD vs. +4% for the XBI) on positive Phase 3 APHENITY sepiapterin data in PKU, which we view as largely as expected but also as putting the stock in an increasingly precarious position ahead of higher risk (but also higher reward) clinical readouts expected over the near term. With respect to sepiapterin's efficacy in the blinded placebo-controlled portion of APHENITY, treatment with 60 mg/kg sepiapterin (n=49) achieved an average 63% (-410 µmol/L) reduction in blood Phe in responders (defined as 30%+ Phe reduction in the run-in period) compared to +1% (-16 µmol/L) for placebo (n=49) at Weeks 5/6. Moreover, in 15 classical PKU patients, sepipaterin showed a 69% (-523 µmol/L) Phe reduction from baseline compared to +3% (-42 µmol/L) in the placebo group. Overall, we think the data from blinded, placebo-controlled portion are solid and largely consistent with previously announced data from the run-in period (see note) and which we view as supportive of a potential approval. Given the presence of generic Kuvan in the PKU market, growing adoption of Palynziq (BMRN, covered by Salveen Richter), and a short period of market exclusivity of 7 years, we continue to take a cautious stance on sepiapterin's commercial opportunity. We maintain our Sell rating but increase our 12-month PT to $37 (vs. $35 prior)."

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