Collins Stewart Starts Ardea Biosciences (RDEA) at Buy; Lesinurad to Fill Hole in Gout Market

Collins Stewart initiates coverage on Ardea Biosciences (NASDAQ: RDEA) with a Buy. PT $30.00.

Collins analyst says, "The key value driver for RDEA is lesinurad, an oral inhibitor of URAT1 in development for gout. Based on a logical mechanism of action, multiple positive P2 studies, and favorable physician feedback, we believe the P3 program has a high likelihood of success. Physicians expect the lesinurad P3 studies to demonstrate efficacy comparable to P2 (~60% of patients achieved sUA <6mg/dL), and while encouraged by the safety profile to date, they await the larger, longer-duration P3 studies for clarity on the LT outlook, particularly as it relates to creatinine elevations. We expect the 4 P3 studies (1Q13) to support regulatory approvals (potentially in 2H14, we model for 1Q15) in the allopurinol-inadequate and -intolerant, Uloric-intolerant and tophaceous gout markets, which represent a WW peak opportunity of $1.1B in 2020 according to our estimates."

For an analyst ratings summary and ratings history on Ardea Biosciences click here. For more ratings news on Ardea Biosciences click here.

Shares of Ardea Biosciences closed at $16.04 yesterday.

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