Cantor Fitzgerald Cuts Rating and Price Target Ventrus Biosciences (VTUS); Phase III Trial Misses; New Exit Strategy Potential Sale

Cantor Fitzgerald downgraded Ventrus Biosciences (NASDAQ: VTUS) from Buy to Hold with a price target of $5.50 (from $30.00).

Analyst, Irina Rivkind, said, "Ventrus announced that its pivotal Phase III trial in 603 hemorrhoid patients failed to meet both primary and secondary endpoints. We previously viewed this drug as the key value driver for the company. Management believes that it has sufficient cash to take its second Phase III drug in anal fissures (VEN-307) all the way through to NDA approval and will also start early formulation work in its fecal incontinence drug (VEN-308). We believe that the company will need additional dilutive financing along the way, especially if it plans to build a commercial infrastructure in 2015."

Rivkind said that the company's remaining assets are relatively small. Overall, the Phase III compound for anal fissures (topical diltiazem dosed TID) could reach $75M/year. The alternative is a sale of the company as a potential exit strategy.

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

Shares of Ventrus Biosciences closed at $12.26 yesterday.

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