UPDATE: BMO Capital Starts Vitae Pharmaceuticals (VTAE) at Outperform

BMO Capital initiated coverage on Vitae Pharmaceuticals (NASDAQ: VTAE) with an Outperform rating and a price target of $11.00.

Analyst Jim Birchenough said, "Our favorable rating is supported by an efficient structure-based drug design platform, a deep pipeline of highly selective small-molecule drugs across multiple therapeutic categories and several opportunities for proof-of-concept data in 2015. With five separate drug development candidates and a balanced mix of partnered assets and proprietary programs, we would highlight VTP-43742 for autoimmune disease and VTP-34072 for metabolic disease as key value drivers for VTAE over the next 12 months."

"VTP- 43742 is currently in phase 1 development for patients with psoriasis (PsO) and should have proof-of-concept data in 2H15, with an opportunity to broaden into other autoimmune diseases, like multiple sclerosis (MS) subsequently. Biologic rationale for an inhibitor of RORt in autoimmune disease is compelling, based on recent feedback at the Boston MS meeting, and pre-clinical data suggests strong effect in autoimmune disease. Following success of oral drugs like GILENYA and TECFIDERA in MS, and recent launch of OTEZLA for PsO we believe that Vitae's VTP-43742 could enter a $10B+ category with features of differentiation, and as such expect proof-of-concept data in 2015 to attract large pharma interest," he added.

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

Shares of Vitae Pharmaceuticals closed at $6.30 yesterday.

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