RBC Cuts PTC Therapeutics (PTCT) Price Target by Nearly 20%
RBC Capital analyst, Simos Simeonidis, cut the PT on PTC Therapeutics (NASDAQ: PTCT) to $9 from $11 after the company disclosed that FDA issued the Refuse-to-File letter because it views both the Phase IIb and the ACT DMD trials as "negative" and not providing "substantial evidence of effectiveness".
The analyst does not see a path forward for ataluren in the US, other than starting a new Phase III trial and the European approval is also at risk.
The analyst uses a sum-of-the-parts methodology to value PTC Therapeutics shares at $9/share and estimates the probability adjusted NPV as:
1) Translarna sales in DMD in the EU (50% probability) ($6/share)
2) Translarna sales in DMD in JPN/ROW (30% probability) ($1.50/share)
3) the company’s projected net cash position ($1.50/share)
For an analyst ratings summary and ratings history on PTC Therapeutics click here. For more ratings news on PTC Therapeutics click here.
Shares of PTC Therapeutics closed at $7.98 yesterday.