Durata Therapeutics (DRTX) Remains Buy Rated at Summer Street

Summer Street reiterated a Buy rating on Durata Therapeutics (NASDAQ: DRTX) with a price target of $24. Analyst Jim Molloy said he was incrementally more positive on the potential for dalbavancin following meetings with management.

"A key question from clients is the expectations for approval on the 5/26 PDUFA date and while management certainly can’t predict what the FDA will do they note that both the API provider and the fill/finish provider have recently passed FDA inspections without any new issues arising. The FDA doesn’t always follow the recommendations of the Advisory Committee, but a 12-0 vote in favor of approval certainly seems to bode well for ultimate approval. The question then moves to the launch, and how DRTX can accelerate the adoption of dalbavancin post-approval where a typical antibiotic traditionally has a measured launch. In dalbavancin’s case this isn’t as much a new drug that may be reserved for “last-line” of therapy (thus guaranteeing a slow uptake) but is rather a new way of moving the patients to an outpatient treatment from an inpatient treatment, which is exactly how hospitals are looking to move their patient base as possible," said Molloy.

For an analyst ratings summary and ratings history on Durata Therapeutics click here. For more ratings news on Durata Therapeutics click here.

Shares of Durata Therapeutics closed at $15.50 yesterday.

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