Stifel upgraded Vitae Pharmaceuticals (NASDAQ: VTAE) from Hold to Buy with a price target of $15.00, saying ‘43742 Data shows drug potential is significant, and toxic signal seems manageable.

Analyst Thomas Shrader commented, "Vitae release its eagerly awaited topline data for VTP-43742 and the drug is clearly active. Statistically significant PASI reductions were seen in two dose groups (350 mg and 700 mg QD) after four weeks of dosing that were roughly in-line with PASI reductions after four weeks of treatment with Otezla. In the highest reported dose group, liver enzyme elevations were seen in four patients that were reversible (after the dosing ended). Liver enzyme elevations are not a feature of Otezla use, but that drug has other significant safety issues including GI complications that require a one week titration and methotrexate (MTX) has similar liver liabilities and lower efficacy. All in all, VTP-43742 looks like a more valuable asset after today’s data. We are returning VTP-43742 to our models with a slightly decreased discount rate (25% from 30%) resulting in a price target of $15."

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Shares of Vitae Pharmaceuticals are up 88.6% to $7.75 in pre-open trade.