Needham & Company Reiterates Buy on Dermira (DERM) Following Licensing Agreement

Needham & Company reiterated a Buy rating and $46.00 price target on Dermira (NASDAQ: DERM) following the company's exclusive licensing agreement with Maruho to develop and commercialize DRM04 in Japan. The licensing agreement provides DERM with $25MM in upfront cash, up to $70MM in milestone payments and sales royalties in the low-double digit rate range.

Analyst Serge Belanger commented, "DERM and Maruho, an Osaka, Japan -based pharmaceutical company specializing in dermatology, entered an exclusive licensing agreement to develop and commercialize DRM04 (hyperhidrosis) in Japan. DERM will receive $25MM up front; up to $70MM in additional payments contingent on regulatory, approval and sales threshold milestones; and sales royalties in the low double-digit range. Maruho is responsible for all development and commercial costs associated with bringing DRM04 to market in Japan. The next step for Maruho is to conduct a ph 1 evaluation of DRM04 in Japan. We view the licensing agreement and its terms as validation for both the use of DRM04 in hyperhidrosis and the overall potential size of the hyperhidrosis market opportunity. DERM maintains all other WW rights to DRM04 and continues to expect NDA filing for DRM04 to be completed in 2H17. We maintain our Buy rating and $46 PT."

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

Shares of Dermira closed at $35.57 yesterday.

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